GTA - RCM - IGST or CGST

[Ethirajan Parthasarathy]

A dealer in Karnataka buys Goods from Maharastra. The transporter in Maharastra has charged freight of 10000 for moving goods from Maharastra to Karnataka. Is dealer in Karnataka liable to pay CGST and SGST or IGST on freigh charges of 10000 under RCM

[Mahadev R]

If transporter is GTA, then dealer in Karnataka is liable to pay GST. IGST would be payable as the place of supply and location of supplier are in different States

[KASTURI SETHI]

Rightly advised by Sh.Mahadev R. Section 12 (8) of IGST Act refers.

[Ganeshan Kalyani]

Simply put, the address of the transporter is of Maharashtra and the recipient of service is in Karnataka. So two different state is involved so IGST is applicable.

[Veeresham Veerabomma]

sir

If both the transporter and the recipient dealer are in same state i.e Karnataka then what is the implication of GST whether the recipient has to pay CGST, SGST or IGST under RCM ? kindly explain sir

[KASTURI SETHI]

Dear Sh. Veeresham Veerabomma,

There is confusion only when supply is inter-State. When both GTA Supplier and Receiver are in the same State there is no confusion or doubt or dispute. What is brewing in your mind ? When supply is intra-State, CGST + SGST is applicable.

AI Summary

Reverse charge mechanism: recipient pays IGST for inter state GTA services, CGST plus SGST for intra state supplies.
When a Goods Transport Agency supplies carriage services and tax is payable under the reverse charge mechanism, the recipient must pay IGST if supplier and recipient are in different States; if both are in the same State, the recipient must pay CGST and SGST under reverse charge.