GST on GTA

[Rajesh Kumar]

Sir/ Madam

A transporter has issued invoices under forward charge @12% GST and also for RCM for which receipting will pay GST. The supply on account of RCM has been shown as Non GST sale in the GST returns.

The procedure of transporter is wrong as he can not opt both options.

Now, what to do

1. Should he pay GST on the same Non GST sale (RCM portion)?

2. If he pays on that amount, what effect will be on the recipient who has paid and availed ITC ?

3. What effect will be on ITC availed by him ?

What is best for him.

[Amit Agrawal]

Whether GTA has shown the supplies (where recipient was liable to pay taxes under RCM) while filing GSTR-1?

And what was HSN used for showing summary of all supplies (i.e. GTA supplies on which he has charged tax @ 12% as well as GTA supplies on which recipient was supposed to pay taxes under RCM) while filing GSTR-1.

[Shilpi Jain]

The moment he has charged 12% on the invoice RCM will not be applicable as per the RCM notification.

In case recipient has paid he can go for refund or adjust such excess tax payment in future period.

AI Summary

Reverse charge mechanism not applicable where supplier charges GST; recipient may seek refund or adjust excess tax. If a transporter charges GST on the invoice, the reverse charge mechanism does not apply; parties should verify GSTR 1 and HSN reporting. A recipient who already paid under reverse charge and availed ITC can pursue a refund of the excess tax or adjust it against future tax liabilities.