Rcm on freight

[Jitin B]

Dear sir i have one doubt regarding RCM on frieght.as per Gst notification no.12/2017 -central tax(rate) dated 28/6/2017 (sr.no 18) transporters has two options to pay GST 5%with out input.12% with input.and it further shows that if transporter chooses 12% as per notification the specified supplier need not pay gst on RCM.it means if he chooses 5% then supplier is also required to pay under RCM.please send me reply

AI Summary

GST Debate: Reverse Charge Mechanism on Freight and Implications of 5% vs 12% Rates for Transport Agencies. A discussion on the Goods and Services Tax (GST) regarding the Reverse Charge Mechanism (RCM) on freight was initiated. Participants debated the implications of GST rates of 5% and 12% for Goods Transport Agencies (GTA). If a transporter opts for 12% GST, recipients are not required to pay under RCM. However, if the transporter chooses 5%, recipients must pay under RCM unless the transporter charges GST on the invoice. The discussion also covered the eligibility of claiming Input Tax Credit (ITC) and the necessity for recipients to obtain declarations from transporters about their GST credit claims.