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TMI Blogis RCM payable on GTA service if freight charges including in Invoice and tax charge on the rate which applicable on original item i.e. 18% and same amount paid to GTAX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir/Madam, We charged freight charges on invoice and calculate GST on same rate as applicable on goods. But same amount of freight paid to GTA. Is GST to be paid on RCM also.? Example: Value of Goods 90000/- Freight charges 10000/- Taxable value 100000/- GST@18% 18000/- Total Invoice value 118000 Now we paid 10000 to GTA and my Freight account shown in Profit and loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account as 0/-(10000 Dr-10000 Cr). Is RCM applicable on payment to GTA of 10000/- Thanking you - Reply By CA HemanthKumar - The Reply = Yes, you need to pay GST under RCM for the services obtained from a GTA i.e. on ₹ 10,000 @ 5%. However, in case if the transporter is an individual truck owner and not a GTA, then the same would be an exempt service and RCM would not apply in such cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Regards CA Hemanth Kumar. - Reply By Rajagopalan Ranganathan - The Reply = Sir, You have to pay gst @18% on the transaction value of the goods supplied, that is, ₹ 90,000/-. In respect of transport charges of ₹ 10,000/- paid to GTA you have to pay gst @5% under RCM. Since you have paid gst @18% on ₹ 1,00,000/- you need not pay separately again. Actually you have paid e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcess gst on service provided by GTA. You can claim refund gst paid in excess within two years from date of payment. If you have paid the entire gst of ₹ 18,000/-by utilizing input credit available you have to pay gst on GTA again since payment of gst under RCM has to be paid in cash. This is for your information. You claim refund of gst paid on 10,000/- @18% since you have to pay gst on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 10,000/-@5% under RCM in cash. - Reply By KASTURI SETHI - The Reply = 13% paid in excess on GTA service. - Reply By KASTURI SETHI - The Reply = The querist has mixed supply of goods and supply of service. That is why mistake has occurred. From the query it is amply clear that transporter is GTA. No need to further explain as everything is crystal clear from the reply of Sh.Rangana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than, Sir. - Reply By CHINTAPALLI MANIKANTA - The Reply = In my opinion, If freight charge is added to the value of supply as you mentioned in the bill i.e recovered from the customer, GST levied on freight charges will be the same rate as that applicable to the supply value i.e. 18% and while paying RS.10,000 to GTA, if GTA opted for RCM you need to pay 5% RCM. - Reply By Gaurav Narula - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = You have mixed 2 transactions: Transaction no 1 - Your invoice to customer Example: Value of Goods 90000/- Freight charges 10000/- Taxable value 100000/- GST@18% 18000/- Total Invoice value 118000 On this invoice, GST is correctly charged. Transaction no 2 - GTA invoice to you Now we paid 10000 to GTA and my Freight account shown in Profit and loss account as 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-(10000 Dr-10000 Cr). Assuming that GTA is not registered, it is an input service on which GST @ 5% is payable under RCM. Your netting off the transaction will not leads to change in tax position on inward and outward side. Thanks CA Gaurav Narula Reach out to me @ [email protected] - is RCM payable on GTA service if freight charges including in Invoice and tax charge on the rate w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich applicable on original item i.e. 18% and same amount paid to GTA - Query Started By: - Gaurav Goyal Dated:- 28-12-2020 Goods and Services Tax - GST - Got 6 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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