I am sending material to Customer and add 5000 as freight charges in tax invoice which is customer to be paid. In tax invoice we charge GST include freight cost and We psy freight cost to transport.
My Question is Who will pay GST under RCM.
please clear my doubt.
4 Replies
s.gowri sankar
(21 Points)
Replied 25 January 2022
U will collect freight charges includeing tax and u will be pay in rcm liability because ur the recipient of transport agency
Vaib
(Sr. Accountant)
(42 Points)
Replied 25 January 2022
No need to pay RCM as you are paying GST on freight in the Invoice.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 25 January 2022
You are required to pay GST on reverse charge on freight, as you are paying freight charges to GTA .
As per Notification 13/2017 CT (r) , the person who pays or liable to pay freight charges to GTA ,shall be treated as the person as Recepient of services.
So the amount you pay to GTA , RCM is applicable on said amount.
(Note : On bill the freight being charged is not your main supply, & moreover you are not a GTA hence your Recepient is not liable to pay GST under RCM)
As per Notification 13/2017 CT (r) , the person who pays or liable to pay freight charges to GTA ,shall be treated as the person as Recepient of services.
So the amount you pay to GTA , RCM is applicable on said amount.
(Note : On bill the freight being charged is not your main supply, & moreover you are not a GTA hence your Recepient is not liable to pay GST under RCM)
Nidhi
(Chief Accountant)
(3150 Points)
Replied 29 January 2022
You are required to pay GST under RCM
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