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Reverse charge rate for Composition Taxpayer

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Laltha Zuala

154 Points Posted on 18 January 2022

I am a composition taxpayer paying tax at 1%. A transporter is uploading reverse charge invoice for transporting my goods at the rate of 5% GST. Since I am a composition taxpayer, do I have to pay this reverse charge at 1% or I have to pay the whole 5% as charged in RCM? Please help.

Replies (3)

Quick Summary

A composition taxpayer paying 1% GST is asking about the correct rate for reverse charge invoices issued by transporters at 5% GST. The advice given is that the full 5% reverse charge rate must be paid, not the taxpayer's usual 1% composition rate.