What are the rates of RCM?
Table of Contents
What are the rates of RCM?
GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM. Composition dealers are required to pay reverse charge at normal rates (5\%,12\%,18\%,28\%) and not at the composition rates (1\% or 5\%).
Is ITC available on reverse charge on GTA?
Since, the recipient pays GST in this case, the GTA is not entitled to take ITC on the input goods or services used in supplying such services to the recipient. However, the recipient of GTA service discharging the tax liability is entitled to take Input Tax Credit (ITC) of the amount of tax paid under reverse charge.
Can GTA charge 18 GST?
It should be noted that the GTA has to choose option to pay tax @ 5\% without ITC or 12\% with ITC for the entire year and option once taken cannot be changed. If these services are provided separately by the GTA, these will be charged to GST separately @ 18\%.
What is reverse GST?
Generally, the supplier of goods or services is liable to pay GST. Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.
How do I convert RCM to GST?
This means that the GST will have to be paid directly by the receiver instead of the supplier. The registered buyer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. In intra-state purchases, CGST and SGST have to be paid under reverse charge mechanism (RCM) by the purchaser.
Is RCM applicable on GTA services?
If the URD hires from a registered GTA, then the registered GTA is liable to pay GST. So, Anand is not liable to pay GST under RCM….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Transporting goods (GST paid by GTA)* | 5\% No ITC or 12\% with ITC |
Is RCM shown in Gstr 1?
The supplier has to report invoice-wise sales subject to RCM in his GSTR-1. The supplier has to report the same in table 4B of GSTR-1 (Outward supplies attracting tax on reverse charge basis). The recipient can utilise ITC on purchases under RCM only in the next tax period.
Is GST TDS applicable on RCM?
TDS under GST is applicable only to a specified class of persons like government, local authorities etc. It is not applicable to all taxpayers. TDS under GST is not applicable when the payment is made under Reverse Charge Mechanism (RCM) by the recipient of service.