Unregiter Transporter (RCM)

RCM 256 views 6 replies

We are a GST register dealer  .Recently  we have SOLD  some items to  party (Who also register dealer)  within state  and   for this  selling  purpose we have paid MINIDOOR fare (Delivery Charge)  Rs. 4500.00 (No GST) to Mr. X   (Who is unregistered in GST, So not issue any Consignment Note)  .

 RCM can be applicable for this transaction , If Yes then what % tax is payable
 

Replies (6)

RCM will not be applicable here.

If the transporter is not a GTA, means does not issue any lorry receipt like unorganized sector individual truck owners, then GST is exempt for both in and outside state sale.

Reference: N.N. 12/2017- CT(R), dt. 28.06.17 and 09/2017-IT(R), dt. 28.06.17

Agree with Mr.Deepak Gupta
As per Notification 5/2017 CT , GTA is not liable to obtain Registration unless he is providing his services to registered Receptient who is liable do RCM.

Hence it's not mandatory that GTA must be Registered , as per Notification 13/2017 CT (R) the applicability of RCM is arises when When service provider is GTA (Issue bily or consignment Note) & Receptient is registered person.

So in your query the RCM is not applicable because the transporter is not a GTA
So this 4500 will not attract any taxes

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.

in your case, he is not a GTA, hence RCM of GTA in GST not applicable.

No there will be no Levy of GST on 4500/-


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