gst on freight under RCM

[Kavali Ramanjeneyulu]

what is the rate of tax to be adopted by recipient on freight under RCM. clarification is requested.

[Mahir S]

Sir,

You need to elaborate your query.

[Ganeshan Kalyani]

Please elaborate your query.

[KASTURI SETHI]

It is too brief to understand. It indicates the degree of interest in the query. Is it a lackadaisical approach or not ?

[Kavali Ramanjeneyulu]

A taxpayer is paying gst @5% on freight under RCM in terms of Notfn no. 13/2017CT dt 28.06.2017. As per Notfn No. 11/2017CT dt 28.06.2017 (s.ni. 9), rate of tax @5% in respect of GTA is applicable provided the credit of input tax charged on goods and services used in supplying the service. In this case, the queries are put forth for clarification pl.

how to ascertain whether the supplier has taken credit on the goods and services used in supplying the service

If the supplier has taken credit on the goods and services used in supplying the service, whether the recipient is eligible for concessional rate of 5% tax or he has to pay tax @18%.

[KASTURI SETHI]

Reply has been given against Issue ID 116549 dated 19.7.20

AI Summary

Clarification Needed on GST Rate for Freight Under Reverse Charge Mechanism: 5% or 18%? A discussion on a forum regarding the Goods and Services Tax (GST) on freight under the Reverse Charge Mechanism (RCM) seeks clarification on the applicable tax rate. The initial query asks for the tax rate to be adopted by the recipient on freight under RCM. The discussion highlights a taxpayer paying 5% GST on freight as per specific notifications, contingent on whether the supplier has claimed input tax credit. The question arises whether the recipient can continue with the 5% rate or must pay 18% if the supplier has claimed such credit. Multiple replies request further elaboration on the query.