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TMI BlogGTA under both RCM & FCM MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... What would be the implications if a GTA has billed under both RCM and FCM.? what would happen with the input taken in FCM ? Do we have to follow FCM ? - Reply By Ganeshan Kalyani - The Reply = GTA service supplier are exempted from GST registration. And if he wants to register then pay gst. Two rate option is available. Pay tax @12% with the benefit of input tax credit. Or pay tax @5% wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout availing input tax credit. If having registration and filing return is only costs the compliance. - Reply By KASTURI SETHI - The Reply = Heavens will not fall !! - Reply By KASTURI SETHI - The Reply = Though a period of one year has elapsed, yet GST Acts are still at infancy stage. That is why Govt. has resorted to unlimited amendments. So ensure that there must not be revenue loss. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedural lapses are ignorable. - Reply By Ganeshan Kalyani - The Reply = Right Sir, agreed with your views. The law is still evolving. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of the experts - Reply By Prakriti Mish - The Reply = So what should i suggest ? shall i ask them to be in FCM ? Service receivers have took input. Do i need to reverse that input ? - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Prakriti Mish - The Reply = Are there any Case Laws under such conditions , Where both RCm and FCM has been charged. - Reply By KASTURI SETHI - The Reply = 8. Goods Transport Agency Service (GTA) Allowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of financial year) This is an extract of decisions taken by GST Council's 20th meeting held on 5.8.2017. As per this you cannot adopt hybrid procedure. GTA can wither opt for FCM or RCM. Regarding GTA Service, there is no change between pre-GST era and post-GST era. First liability is cast upon consignor or consignee and , thereafter, GTA comes into play. Practically, normally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consignor or consignee pays the freight and they can take ITC after payment of GST in cash. It is now crystal clear that you cannot opt for both mechanisms i.e. FCM and RCM. If someone has committed such mistake, it is a procedural lapse. In other words, it is a bona fide lapse. You are advised to avoid such dual practice as it may attract maximum penalty of ₹ 25,000/- (General Penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y). Moreover, it is quite clear that burden of proof regarding availment of ITC and correct payment of tax is cast upon assessee. GST law still being in its infancy stage, such bona fide mistake (one time) may be ignorable by the Govt. because no revenue loss is presumed to be involved. - Reply By Ramaswamy S - The Reply = Advisable Forward Charge for ease of operations. Regards S.Rama ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... swamy - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = Well explained Sethi sir - Reply By KASTURI SETHI - The Reply = Sir, Thanks for liking and appreciating my reply on the issue. - Reply By Prakriti Mish - The Reply = Thank You Sethi Sir for the Reply. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir. - Reply By hr hr2 - The Reply = Hello Sir, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follow-up question: - If the GTA (Vehicle Owner) is currently registered under RCM and wishes to move to FCM in the next FY, how would the following cases be treated: 1. If the GTA places own vehicles directly to a manufacturer? (Freight + 12% needs to be charged?) 2. If the GTA places own vehicles through a broker, where broker is unregistered under GST, who needs to pay GST? Example- Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured by party A is being placed through a GTA party B who asks the broker for a vehicle. The broker hires actual vehicle from GTA party C(vehicle owner), how does the party C bill the broker and which party pays the GST? 3. If the GTA party C, places own vehicle through another GTA Party B, how should party C bill party B? Your guidance/advice would be highly appreciated. Thanks in adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance. - GTA under both RCM & FCM Mechanism - Query Started By: - Prakriti Mish Dated:- 21-8-2018 Goods and Services Tax - GST - Got 14 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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