Question ID :
31647
Reverse Charge on GTA
Whether Freight paid to registered transporter (GTA), GST is charged on bill, is liable to be Taxed under reverse charge. And whether credit on input GST, charged on GTA bill, can be taken.
Posted by
Vivek Khemka
on
May 22, 2018
Filed Under
GST
IF the registered transporter already charged no need to pay again and input can be claimed
Posted by
VINAY BHARGAV KUMAR G on
May 23, 2018
Answer ID :
68663
As per Section 9(3) of CGST Act, 2017 read with Sr. No. 1 of Notification No 132017 , a registered person is a person liable to pay GST under reverse charge (RCM)when receiving GTA services.
Consider the above, liability of registered person is not absolved merely on the grounds that GST has been charged by GTA service provider.
There are two options in this scenarios
1. Ask the GTA service provider to raise a credit note for tax amount and pay GST on RCM or
2. Take credit of taxes paid to GTA provider and discharge GST under RCM. Here the availment of credit can be litigated since the taxes charged itself are in non-conformity with the law.
Posted by
SACHIN AGARWAL on
May 23, 2018
Answer ID :
68670
1. If the GTA has charged the Tax, tax is not needed to be paid by Registered Recipient. As the charge u.s. 9(3) comes only when the GTA has not paid the tax @12 percent. Pls refer notification no. 13-2017(CTR) as amended by notification no. 22-2017(CTR) dated 22.08.2017.
2. ITC is always available to the recipient as the inward supply from GTA to the recipient is business expenditure. The availability of ITC shall always be subject to Sec. 17.
Posted by
Jatin Harjai on
May 24, 2018
Answer ID :
68675
I accord to the answer of Mr. Jatin that if GTA as paid GST @ 12 , then the RCM provisions would not apply.
You can avail the credits and utilise to pay your output tax liability except RCM liability as that has to be paid in cash.
Posted by
SACHIN AGARWAL on
May 25, 2018
Answer ID :
68680
I also agree with the view of jatin
Posted by
CA. SATISH CHAND GARG on
May 25, 2018