Question8: We are using services from a transporter who is not registered under GST. Now there is a question that at what rate we will pay the GST under reverse Charge. And are we eligible for input credit.


Answer: As per Notification No. 13/2017-CT (R) dated 28.06.2017 there are 7 categories of recipients of GTA service who they are liable to pay GST on reverse charge basis. If you fall in any of those categories, then you will have to pay GST on RCM basis on receipt of GTA service. The applicable rate of tax on the said supply of service on RCM bais is 5% in view of Notification No. 11/2017-CT (R) dated 28.06.2017. ITC of this 5% tax paid on reverse charge basis is entitled. (Reply dt. 21/11/2017)