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Reverse charge mechanism on gta

CMA Bhavya (Assistant Manager Finance) (862 Points)

18 February 2019

Dear CA Club team,

In one of the Freight forwarder bill the Invoice contains 2.5% CGST & 2.5% SGST -GST Payable by the recipient- but we are paying 9% CGST & 9% SGST as RCM and availing the input credit is it correct.

please revert with your valuable suggestions

regards,

Bhavya.P

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (127160 Points)
Replied 18 February 2019

Originally posted by : Bhavya
	Dear CA Club team, In one of the Freight forwarder bill the Invoice contains 2.5% CGST & 2.5% SGST -GST Payable by the recipient- but we are paying 9% CGST & 9% SGST as RCM and availing the input credit is it correct. please revert with your valuable suggestions regards, Bhavya.P

I can't understand Your query...

CMA Bhavya (Assistant Manager Finance) (862 Points)
Replied 18 February 2019

Dear Sir,

In Invoice they have charged 5% (2.5%+2.5% CGST &SGST) with a note saying GST payable by the recipient. But we have Paid (9%+9% CGST &SGST) as RCM to avail the Input credit on GTA.

Hope its clear now sir

ANISHA RAY (67 Points)
Replied 18 February 2019

As a service receiver paying tax on reverse charge basis for GTA service availed, the applicable rate is 5% and not 18%

2 Like

pritesh (CA Final student) (7101 Points)
Replied 18 February 2019

Yes you can avail itc paid under rcm.the miskate us your paid 18% instead of 5%.. there is no issues you can claim itc

1 Like

RAJA P M ("Do the Right Thing...!!!") (127160 Points)
Replied 19 February 2019

Originally posted by : Bhavya
	Dear Sir, In Invoice they have charged 5% (2.5%+2.5% CGST &SGST) with a note saying GST payable by the recipient. But we have Paid (9%+9% CGST &SGST) as RCM to avail the Input credit on GTA. Hope its clear now sir