Table of Contents
Is RCM applicable on carriage inward?
ITC of tax paid under RCM towards GTA services availed both on account of (inward supply of goods from the supplier or outward supply of goods to the customer) shall be allowed to such person.
Can we claim input on freight?
Q2. Can I claim GST input on freight charge? Yes, it can be availed.
Is ITC available on freight charges?
yes itc of freight can be availed . in the case of RCM you are required to pay GST through cash mode and then you are eligible to avail the ITC of freight paid.
Is GST applicable on freight inward?
GST must be charged on the cumulative value of supply. If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment.
Is RCM payable on freight?
13/2017- Central Tax (Rate) dated 28th June, 2017) are required to pay GST under RCM….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Carrying- goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500 | 0% |
Is RCM eligible for input credit?
Input Tax Credit under RCM A supplier cannot take Input Tax Credit of GST paid on goods or services used to make supplies on which the recipient is liable to pay tax under reverse charge. The recipient can avail Input Tax Credit of GST amount that is paid under reverse charge on receipt of goods or services by him.
When RCM is applicable on freight?
Can GTA claim ITC?
The GTA service supplieris not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST). In case the GTA service supplierhires any means of transport to provide his output service, no GST is payable on such inputs.
Can we claim ITC on freight outward?
As under erstwhile law ITC on outward transportation is not allowed.
Is GTA exempt from GST?
GTA have the option to charge GST at the rate of 2.5% or 6% CGST (equivalent SGST and 5%, 12% IGST). The GST rates are dependable on taking credit of input tax….Goods Transport Agency (GTA) under Goods & Services Tax (GST)
| Sr. No | Exemptions |
|---|---|
| 6 | newspaper or magazines registered with the Registrar of Newspapers |
What is the limit for RCM on freight?
5,000 per day. Therefore if a total purchase of less than Rs. 5,000 is made in one day from unregistered person then there is no requirement to pay tax on RCM. This limit is total of Rs.
Can GTA opt for RCM and FCM both?
A GTA can shift from RCM to FCM and, vice versa, but such option is possible only at the start of a financial year i.e. in April and not in the middle of the year. Here is extract of GST Council meeting. “Allowed option of 12% GST with full ITC under forward charge.
Is RCM applicable on freight outward?
Yes the transporter will issue consignment note. Sir, I have spoken over GST help desk number 1800 425 3787, there reply is you can claim ITC on freight inward paid under RCM but not on freight outward.
Can we take RCM credit in same month?
8. Can we claim ITC on RCM in same month? Yes, you can claim the Input Tax Credit on RCM in the same month, when you paid the GST under RCM.
Can we take ITC on RCM in same month?
Can GTA take ITC?
What is the difference between FCM & RCM?
Supplies made by Government to a business entity are generally covered in GST under the Reverse charge mechanism (RCM) basis. However, there is a twist to the tale wherein certain supplies are liable to GST under Forward charge mechanism (FCM) as well.
Can we avail ITC on GTA?
What is a goods transport agency (GTA)?
This freight is facilitated either by a Goods Transport Agency (GTA) or common carriers such as auto rickshaw or courier agencies. A GTA is basically any person who provides services in relation to freight or transport of goods by road and issues a consignment note, commonly called as Lorry Receipt (LR).
Who is the recipient of a transportation service from GTA?
For example, a dealer takes the services of a GTA to deliver goods to his customer. The freight for the consignment is paid by the supplier. In this case, the dealer is considered as the person who has availed the transportation service from the GTA and hence, is the recipient of the service.
What is the consideration of GTA for consignee Ltd?
Consignor Ltd., a public limited company, engaged in manufacturing of excisable goods arranges for the transportation of goods from Goods Transport Agency to the Consignee Ltd. The GTA charges a consideration of INR 10000 from Consignee Ltd. What will be the amount of service tax & who shall be liable to pay service tax?
What is the GST on freight charges for transportation?
Transport of any goods, where the gross amount charged for transportation for a consignment transported in a single carriage is less than Rs. 1,500 For transportation of goods other than the above, GST on freight charges at 5% is levied. GST should be charged on the total value of supply.