In case of Transport the Gst is payable by Consignee under reverse Charge. Would the Consignee deduct the GST amount while making the payment or it will paidby his own pocket.
Eg.
If a Transport has issued me a Consignment Note for a freight of 50,000 then should i pay him 50,000 and pay 2500 GST on my own or should i pay him 47500 and deposit remaining 2500 to government.
Consignee Responsible for Full GST Payment on Freight Under Reverse Charge; No Input Tax Credit Available. A discussion on the Goods and Services Tax (GST) reverse charge mechanism for transport services highlights that the consignee is responsible for paying GST on the full freight amount. The consignee must pay the GST from their own funds, not deducting it from the transporter's payment. Initially, it was incorrectly stated that the consignee could claim Input Tax Credit (ITC) on this GST, but it was later clarified that ITC is not available for services under the reverse charge mechanism. The forum also notes that terms of the quote determine who bears the tax cost. (AI Summary)
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