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Rcm on freight, Goods and Services Tax - GST

Issue Id: - 113429
Dated: 23-2-2018
By:- Jitin B
Rcm on freight

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Dear sir i have one doubt regarding RCM on per Gst notification no.12/2017 -central tax(rate) dated 28/6/2017 ( 18) transporters has two options to pay GST 5%with out input.12% with input.and it further shows that if transporter chooses 12% as per notification the specified supplier need not pay gst on means if he chooses 5% then supplier is also required to pay under RCM.please send me reply

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Showing Replies 1 to 11 of 11 Records

1 Dated: 23-2-2018
By:- rajkumar shukla

pl confirm whether it is notfn 11/2017 or 12/2017

2 Dated: 23-2-2018
By:- Rajagopalan Ranganathan


Sl. No. 1 of Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 as amended clearly says if the Goods Transporter opts for payment of gst @6% with eligibility to avail ITC of gst paid on inputs and input services, then payment of gst under RCM by the receiver of the service does not arise.

If the transporter is not paying gst on the service provided by him to the entities listed against Sl. No. 1 of the above Notification then the entities listed have to pay gst on GTA service received by them under RCM @ 5% since the entities cannot avail ITC of gst paid on inputs and input services availed by the transporter.

3 Dated: 23-2-2018
By:- Alkesh Jani

Sir, In simple language it can be said that If you are getting invoice of 12% from GTA, then you are not required to pay under RCM and if you are getting invoice then you are required to pay 5% under RCM

4 Dated: 23-2-2018
By:- Jitin B

@@Rajagopalan Ranganathan

Dear sir,

As per notification

If GTA opts to pay 5% on output then input is not availabletosuch GTA.And the notification also says if GTA chooses 12% on output the specified suppliers are not required to pay GST under RCM as u have said but the notification is silent about if GTA chooses 5% on output then whether the specified supplier are required to pay GST under RCM or not?

5 Dated: 23-2-2018
By:- Ganeshan Kalyani

if transporter charges GST on invoice either 5% or 12% then the recipient (which you have mentioned as supplier ) need not pay GST under reverse charge.

if transporter does not charge any tax on invoice then the specified recipient is liable to pay GST under reverse charge .

Further, the option of 5% or 12% is provided to the transporter. If he claims input tax credit then will have to pay tax @12% and if he doesn't then 5%.

6 Dated: 24-2-2018

The reply of Sh.Ranganathan Sir is very much clear. What I infer from all the replies, first liability is of GTA (Transportet), thereafter consignor or consignee.

7 Dated: 24-2-2018
By:- Ganeshan Kalyani

I agree with Sri Kasturi Sir's view .

8 Dated: 28-2-2018
By:- Kusalava InternationalLimited


Can I Claim ITC 12% Invoice raised by transporter.

9 Dated: 28-2-2018
By:- rajkumar shukla

In my view ,the restrictions imposed for availing ITC is for GTA and not for recipient. Recipient is eligible for ITC so long as GTA services are input for them.

10 Dated: 28-2-2018

Yes, Sir. I agree with you.

11 Dated: 7-3-2018

In case of recipient is paying the GST under RCM @5%, recipient should take the declaration on LR/Bill from the transporter that he is not taking the credit of GST on input/CG/input service availed by him, if transporter is registered and if transporter is unregistered there no question of taking the credit of GST by him.


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