GST HEAD ON TRANSPORT CHARGES RCM, Goods and Services Tax - GST

[Rakesh Sharma]

Dear Experts,

I purchase goods from Mumbai to kolkata.Transporter is unregistered but having office in both states.In bilty mumbai address is printed. If i ask bill from transporter they give me a bill where kolkata address is printed.So in what head i have to pay gst on rcm ? cgst -sgst or igst?

Posts / Replies

[KASTURI SETHI]

Where are you registered as a dealer ? It is necessary to post correct reply.

[Rakesh Sharma]

I am registered in kolkata. and one correction in query-in bilty transporters head office address is printed ie-telangana.

[KASTURI SETHI]

Section 12(8)(a) of the IGST Act, 2017 is applicable to the situation explained by you. Hence the place of supply is Kolkata, the location of the registered person who has received the taxable supply. The status of transporter is unregistered so liability of GST is cast upon you as registered person receiving the supply.. You as a registered dealer are receiving the transport service by road from an unregistered transporter whether from Mumbai or Telangana it makes no difference as place of supply is Kolkata as a registered person receiving supply of service.

SECTION 12. Place of supply of services where location of supplier and recipient is in India.

(8) The place of supply of services by way of transportation of goods, including by mail or courier to, -

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

[Rakesh Sharma]

It means i have to pay cgst-sgst on rcm.

[KASTURI SETHI]

I also want to know constitution of your firm. Whether Prop., Partnership, Ltd., Private Ltd.etc. ?

[Shyam Kedia]

Dear Kasturi Sethi sir,

I have some clarrifications on RCM Liablity and ITC on RCM to be taken.

a. If RCM liability is relating to FY 2017-18 i.e. client has availed advocate services in FY 2017-18 but not paid RCM liablity till now. Now if he is going to pay, whether he can take credit in the current month after paying RCM liability through cash because RCM credit can be taken only after issuing invoice/Payment voucher as applicable. So i will issue Invoice or payment voucher as applicable and take the credit.

b. In other case, it is so that i have paid tax under RCM but only thing is i have not shwon separately in 3B in table 3.1(d) under "Inward supplies liable to RCM" and while taking credit did not shown under "ITC for tax paid on RCM" in table 4A(3) since GST was new and people were not excatly aware of this problem. i.e. simply i have paid tax which appeared in cash ledger and then adjusted against my normal tax liability. So Whether this is accepted by the department since GST was new in 2017-18.

[KASTURI SETHI]

Sh.Shyam Media Ji, Pl.post your query independently. I mean separate Issue ID no. You will get more replies.

[Rakesh Sharma]

Proprietorship firm.

[KASTURI SETHI]

With reference to serial no.4 dated 18.6.19 above, yes. CGST & SGST is applicable as per place of supply in this case.