9911796707
| Discussions Forum | ||||
Home  Forum Goods and Services Tax - GST This
A Public Forum.
Submit new Issue / Query
My Issues
My Replies
|
||||
RMC ON FRIGHT, Goods and Services Tax - GST |
||||
|
||||
RMC ON FRIGHT |
||||
One of our client is Cement Dealer and charging tax under forward charges on cement sale @ 28%. Now cement company appointed him as C&F Agent and paying secondary freight for Transportation of Cement bag from Depo to Sub dealer/customer location. My query is : Can dealer raise secondary freight invoice to Cement company under REVERSE Charges mechanism with the object that GST on freight will be paid by cement company. Posts / Replies Showing Replies 1 to 2 of 2 Records Page: 1
Sh. Shailander Jain Ji, (1) A C & F Agent is a pure agent in terms of Rule 33 of CGST Rules, 2017. See Explanation below sub-clause (iii). The pure agent is responsible for payment GST on the amount of commission. (2) A C & F Agent works for and on behalf of the Principal (owner). So the Principal is liable for discharging GST liabilities. (3) A person who pays (bears) the freight can pay GST on the amount of freight under RCM. (4) Thus the Cement Company, being the Principal can pay GST on the amount of secondary freight.
Reverse charge applicable only for GTA i.e. a person transporting the goods and issuing a consignment note. Pls see if these are satisfied. Page: 1 |
||||
.jpg)
