gst on freight under RCM

[Kavali Ramanjeneyulu]

A taxpayer is paying gst @5% on freight under RCM in terms of Notfn no. 13/2017-CT dt 28.06.2017. As per Notfn No. 11/2017-CT 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

Is there any requirement of giving declaration by the GTA regarding non availement of ITC on goods and services used in supplying 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%.

AI Summary

Clarification on GST for Goods Transport Agencies: 5% RCM, ITC Availment, and Conditions for Concessional Rates. A discussion on Goods and Services Tax (GST) on freight under the Reverse Charge Mechanism (RCM) addresses questions about tax rates and input tax credit (ITC) for Goods Transport Agencies (GTA). A taxpayer inquires about the applicability of a 5% GST rate under RCM, the need for GTA declarations on non-availment of ITC, and conditions for concessional tax rates. Experts clarify that GTAs opting for a 12% GST rate can avail ITC, and the recipient is not liable for 5% RCM tax. The forum emphasizes that no declaration is needed under GST, unlike the previous service tax regime.