dear sir
We are transport company registered under GST and submitting bills to our service recipients , who are paying GST of 5% on RCM basis and availing ITC against RCM.
NOW from 1st August 2021, onwards we would like to shift to forward charges to 12 %.
can we shift now in the mid of financial year from RCM to forward charges .
please guide us.
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Shifting from RCM to forward charges under GTA.
Replies (6)
Quick Summary
In my opinion yes you can.
I don't think there is any restriction
I don't think there is any restriction
No you cannot convert from first financial year not from middle year
one reply is "yes "and another is "no". Request for more comments on this issue.
Condition for 12% with ITC - Provided that GTA opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.[NN 20/2017-CTR dated 22nd Aug 2017]
There is no mention of beginning of financial year. Therefore, once you charge 12% you would be required to charge 12% going forward and eligible on ITC.
Please refer section 18(1)(d) on taking credit on stock in hand and CG as on date of shifting to 12% with ITC.
Hope this helps
Thank you very much for your clarification.
Regards,
Ramakrishna
Yes you can shift in the mid of the financial year. But please note if your turnover is more than 50 crore then once you shift you will have to generate E-invoice
Know more about e-invoicing under gst
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