Menu
Reverse charge under Gst
How to treat transport frieght under RCM as the Vrl logistics had clearly mentioned that Gst is to be payable by consignee by Vrl logistics as we have to pay Tax as Reverse charge and we have to pay it..
Replies (12)
In case of Logistics they issued invoice after charge GST
In Case of GTA, GST Amt paid by the service recipient under RCM
Exmple:-
xyz ltd receive GTA service of Rs. 10,000/-
than xyz ltd paid GST Amt Rs. 500/- on Freight Amt Rs. 10,000/- under RCM in cash and take ITC benefit
Yes reverse charge machinisam is applicable for transport services under sub-section 3 of section 9
you hv to raise tax invoice and payment voucher under rcm and pay tax @ 5%
itc is available
you hv to raise tax invoice and payment voucher under rcm and pay tax @ 5%
itc is available
ITC can be availed on payment of 5%??
@ Gaurav Vij.,
Yes... ITC available for the RCM payment.
Yes... ITC available for the RCM payment.
sir in the Vrl invoice they have clearly mentioned that Gst should be paid by the consignee as they have reversed in invoice so we have to pay tax on frieght
Sir then where 12% rate applicabl??
if GTA charge gst it will be 5 % with no itc and 12% with itc
@ Gaurav Vij.,
The 12% rule applicable to GTA. Not for receipients...
If GTA can't charge GST on his Service (Like Transportion of Road it's exempted under GST. So, they can't charge) then it's will payable by Recipient as rcm and 5%...
If GTA charge 12% then it's not under RCM basis to recipient of Services...
Are you understand...?!
The 12% rule applicable to GTA. Not for receipients...
If GTA can't charge GST on his Service (Like Transportion of Road it's exempted under GST. So, they can't charge) then it's will payable by Recipient as rcm and 5%...
If GTA charge 12% then it's not under RCM basis to recipient of Services...
Are you understand...?!
but sir as per the statutory updates recently. GTA cant charge gst it is only on RCM basis isnt it sir?
and if it is so than in GTA services will be taxable only on RCM basis. right?
and if it is so than in GTA services will be taxable only on RCM basis. right?
GTA has option to either collect 12% or tell the recipient to pay under RCM @ 5% and recipient can take credit in both circumstances. However, option once exercised by GTA is final. 5% without ITC means no ITC for GTA. For recipient ITC fully available.
is compensation cess is Applicable for Beedies unpacked Beedies ...?
Dear Sir,
As per Transportation of Goods By road its not fully exempted from GST ,And only Service provided to Unregistered persons by gta is exempt under GST ( if recipient is Registered Person then the GST amount should be paid by service recipient As per the Notification 13/2017 of CGST).
If GTA service provider opts for 5% he cannot claim Input tax credit. Otherwise if he opts 12% then he can claim ITC for his business.
Recent Topics :
- GST applicability on own-vehicle goods transportat
- FAST DS Scheme 26
- 12A registration expired in FY 22-23 and is not re
- Seeking Clarification on Business Code Selection a
- CG on property sold after construction of a house
- Nursing Home Taxability
- CA opted for Form 10IEA mistakenly - Demand raised
- Query on scenario related to FAST DS 2026
- Audit Executive (Remote, India) - Ace Auditing Off
- GST Transaction On Used Clothing
Related Topics :
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
CCI
Pro
CAclubindia
