Question ID :
40921
054873
GTA charges 5% or 12% GST.
1. At what rate is RCM payable?
2. Is RCM mandatory for GTA services whether GTA has paid GST or not ?
3.What is the status of GST paid by the GTA in the hands of the recipient ?
Posted by
Suprakas Chaudhuri
on
Dec 19, 2020
Filed Under
GST
GTA has two options :
1. GST @12% and issue tax invoice and avail ITC
2. Raise invoice without GST and do not take ITC, in this case only RCM is applicable.
Recipient has full entitlement to avail ITC in all cases
Posted by
SHIVANAND CHAUDHARY on
Dec 21, 2020
Answer ID :
80881
Agree. Yes the GTA has option to either pay under forward charge @12% or opt for RCM. Though this option is GSTIN-wise.
THe recipient would be eligible for credit subject to section 16 & 17 and relevant rules.
Posted by
CA. SHILPI KATARIYA on
Jan 18, 2021