Question ID :
36871
RCM FOR GTA
Please explain how and in which case recipient needs to deduct RCM for GTA services.
a) Rate of RCM
b) Whether GTA needs to be registered with GSTN or unregistered also.
c) if GTA has charged gst @ 5% then also do we need to deduct RCM
Posted by
pradeep kumar agrawal
on
Nov 23, 2018
Filed Under
GST
Cases where recipient needs to deduct under RCM are;
Where GTA provided the services to any of the following,
Companies, Societies, Co-operative society, Partnership firm whether registered or not and casual taxable person.
GTA has to compulsorily registered under GSTN.
Eventhough GST @5% the recipient should pay GST under RCM.
If GTA charged @12% it is a forward charge, then the GTA has to pay GST.
Posted by
B Manohar Reddy on
Nov 24, 2018
Answer ID :
76017
See notification 13/2017. RCM is applicable in case of services provided by GTA to company, society, co-operative society, partnership firm and casual taxable person. (A) Rate under RCM is 5%. (B) GST registration is compulsory for recipient. GTA need not be registered if all services provided are covered under RCM. (C) Even if GTA has charged GST, deduction under RCM is compulsory.
Posted by
CA. chunauti dholakia on
Nov 27, 2018
Answer ID :
76053
No, no. RCM is not to be 'deducted'. It has to be paid in addition to bill amount. Eg. If GTA issues bill for Rs.100, please pay GTA Rs.100 (ignoring TDS under Income-tax) and then additionally pay GST of 5% to Government and claim credit (if eligible).
a. Rate of GST on GTA is 5% (sl.no.11(i) of 11/2017-CT(R)
b. Registration status of GTA not relevant
c. If GTA charged GST, please check if RCM applicable to you (see cl. (a) to (g) of sl.no.1 of 13/2017-CT(R)). If yes, tell GTA to revise invoice (if registered to show as RCM payable) and pay only basic fare to GTA. And separately pay GST to Government under RCM
Posted by
CA. JATIN CHRISTOPHER A on
Dec 10, 2018