transporter paying gst under forward charge but from new year they want to start issue invoice under reverse charge..can he do ...?
Replies (3)
Quick Summary
This discussion addresses whether a transporter currently paying GST under the Forward Charge Mechanism (FCM) can switch to the Reverse Charge Mechanism (RCM) from the new year. The consensus is that this transition is generally not permissible. The content also touches upon the complexities and potential negative impacts, such as loss of Input Tax Credit (ITC) for both the transporter and the customer, if such a switch or misclassification occurs.
Does the the transporter work as forwarding agent? if so it will attract GST... if it is reimburse d from the customer as a mediator, there will be a cascading effect as you will not get the ITC credit and as well the customer will also not get the same... your customers cost will increase and you may loose your business
Transporter paying gst @ 12% currently but from new year they wants to start this n reverse charge i.e. FCM TO RCM .... my question is that he can do this... FCM TO RCM CAN HE DO,...