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.

AI Summary

Transporter Faces GST Issues on GTA Services; Must Choose Forward Charge or RCM, Not Both A transporter is facing issues with Goods and Services Tax (GST) on Goods Transport Agency (GTA) services. They have issued invoices under a forward charge at 12% GST and also for Reverse Charge Mechanism (RCM), showing RCM supplies as non-GST sales in returns, which is incorrect. The transporter cannot opt for both options. Queries include whether GST should be paid on non-GST sales, the impact on the recipient who has paid and claimed Input Tax Credit (ITC), and the effect on ITC availed by the transporter. Responses suggest checking the filing details and adjusting or refunding excess tax payments.