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

Concessional GST rate for freight under reverse charge hinges on whether supplier claimed input tax credit.
The enquiry concerns whether freight received under the reverse charge mechanism qualifies for a notification-based concessional GST rate for GTA services, which is conditional on the supplier having availed input tax credit on goods and services used to supply the service, and asks how a recipient can verify the supplier's credit status and whether that verification affects the recipient's entitlement to the concessional rate.