Question
I am receiving goods from a goods transport agency my doubt is 1) whether i have pay GST reverse charge 9(3) at what rate 5% or the rate at which my goods are taxable 2)In any of the above case whether i can claim full input tax credit 3)if my goods are zero rated under gst in that case also how much GST i have to pay under reverse charge. Please give notification number if applicable in this case if any.
Answer
As per section 15 of CGST Act, freight is
included in the value of goods when it is paid by supplier.
But when the receiver of goods pay transport charges to GTA then tax is to be
paid on Reverse charge basis by the recipient irrespective of the fact whether
the goods are taxable or not.
So if you are paying to the transporter you are liable to pay tax @ 5% as per
Notification No. 11/2017 Central Tax (Rate) vide s.no. 9(iii) which is as
follows:
|
(iii) Services of goods transport agency (GTA) in relation to transportation of
goods (including used household goods for personal use). Explanation.- "goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.] |
2.5 |
Provided that credit of input tax charged on goods and services used in
supplying the service has not been taken [Please refer to Explanation no. (iv)] |
| or | ||
|
6
|
Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall , henceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. | |
You can claim full ITC of tax paid. (Reply dt. 27/09/2018)