Reverse charge on transportation

RCM 5798 views 23 replies

Prem Kewalramani

292 Points Joined January 2016

Please inform what is rate of GST reverse charge on transportation charge for 2018-19....We have to claim set off on it....Whether it is 12 percent.

Replies (23)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Only @ 5% if it's under RCM...

Dear Sir...We have paid transport charges on material purchased by us...For this year we have to pay GST on it...We understand we have to pay 12 percent and have to show taxable value in 3.1.d of GSTR 3 B...

AND IN NEXT month we will have to claim set off of this amount by claiming this amount in colum 4 A.3 of GSTR 3 B....

Please tell whether it is right....then what is the tax rate 5 percent......please guide and help

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Originally posted by : Prem Kewalramani

Dear Sir...

We have paid transport charges on material purchased by us...For this year we have to pay GST on it... - I DON'T KNOW WHY YOU WILL PAY GST ON IT...?

We understand we have to pay 12 percent and have to show taxable value in 3.1.d of GSTR 3 B...AND IN NEXT month we will have to claim set off of this amount by claiming this amount in colum 4 A.3 of GSTR 3 B....

Please tell whether it is right.... - YES... YOU ARE EXACTLY CORRECT AS LIABILITY COLUMN AND ITC COLUMN

then what is the tax rate 5 percent...... - IF THE TRANSPORTER IS GTA THEN YOU CAN PAY ONLY 5% OF TAX AS CGST @ 2.5% & SGST @ 2.5%

please guide and help

Prem Kewalramani

292 Points Joined January 2016

Sir Transporter has not charged only freight...no GST levied...hence I think I have to pay...but he is having GST NO ..LAST year I was told that if you want to claim set off under reverse charge you have to pay 12 percent ...and ITC is to be claimed in next month..not in this month...please correct me if not correct..

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

As per my view.,
The freight charges from GTA then RCM applicable... Otherwise GST not applicable for the Freight (Services by way of Transportation of goods are exempted by road)....

*As per Your query

If You are paid GST under RCM basis then You can claim ITC as per the Same...

Prem Kewalramani

292 Points Joined January 2016

The transporter is regd under GST but has not charged separate GST...LUMPSUM freight charged in LR...Please confirm I have to pay 5 percent or 12 percent on this freight amount for RCM...and moreover whether I will be able this amount as ITC under RCM in same month or next month ...please someone guide me correctly....I am confused.. thanks

Mayur

Free Learner

339 Points Joined October 2011

Agreed with Raja Sir, meaning of GTA is as under..

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

This means, while others might also hire out vehicles for goods transportation, only those issuing a consignment note are considered as a GTA. Thus, a consignment note is an essential condition to be considered as a GTA.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

The applicable rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017, is @ 5% (CGST – 2.5% + SGST – 2.5%). Therefore the Recipient is required to pay GST @ 5% on Reverse Charge Mechanism and of course the Recipient is allowed to take Input Tax Credit . He can avail it same month

Mayur

Free Learner

339 Points Joined October 2011

Dear Prem ji,

It is GTA who got 2 options to pay GST, if GTA pays 12% GST then it can claim ITC and if pays 5% then GTA can not claim ITC.

Beside that any service provided by GTA to Registered Dealer, then RCM is applicable. and gst is to be paid by a registered dealer.

Tax Rate at which GST is to be paid by dealer under RCM is 5 %

Dealer can claim RCM paid in the same month or in subsequent month.

Mayur

Free Learner

339 Points Joined October 2011

Agreed with Pankaj ji

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes... I agreed to both experts replies....

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Dear Mr Prem., Except GTA GST not applicable for transport charges. Also if he GTA then RCM applicable and payable by recipient of Services. The GST rate @ 5%....