GST – Started By: – Prakriti Mish – Dated:- 21-8-2018 Last Replied Date:- 8-1-2019 – What would be the implications if a GTA has billed under both RCM and FCM.?what would happen with the input taken in FCM ? Do we have to follow FCM ? – Reply By Ganeshan Kalyani – The Reply = GTA service supplier are exempted from GST registration. And if he wants to register then pay gst. Two rate option is available. Pay tax @12% with the benefit of input tax credit. Or pay tax @5% without availing input tax credit. If having registration and filing return is only costs the compliance. – Reply By KASTURI SETHI – The Reply = Heavens will not fall !! – Reply By KASTURI SETHI – The Reply = Though a period of one year has elapsed, yet GST Acts are still at i
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ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year) This is an extract of decisions taken by GST Council's 20th meeting held on 5.8.2017. As per this you cannot adopt hybrid procedure. GTA can wither opt for FCM or RCM. Regarding GTA Service, there is no change between pre-GST era and post-GST era. First liability is cast upon consignor or consignee and , thereafter, GTA comes into play. Practically, normally consignor or consignee pays the freight and they can take ITC after payment of GST in cash. It is now crystal clear that you cannot opt for both mechanisms i.e. FCM and RCM. If someone has committed such mistake, it is a procedural lapse. In ot
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Reply = Thank You Sethi Sir for the Reply. – Reply By Ganeshan Kalyani – The Reply = I agree with the views of Sri Kasturi Sir. – Reply By hr hr2 – The Reply = Hello Sir,A follow-up question:-> If the GTA (Vehicle Owner) is currently registered under RCM and wishes to move to FCM in the next FY, how would the following cases be treated:1. If the GTA places own vehicles directly to a manufacturer? (Freight + 12% needs to be charged?)2. If the GTA places own vehicles through a broker, where broker is unregistered under GST, who needs to pay GST? Example- Goods manufactured by party A is being placed through a GTA party B who asks the broker for a vehicle. The broker hires actual vehicle from GTA party C(vehicle owner), how does the party C
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