How do I charge GST on transportation?
no. 11, (i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) (Heading 9965 &9967 respectively) attracts GST @2.5% or 6% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 5% or 12%.
13/2017- Central Tax (Rate) dated 28th June, 2017) are required to pay GST under RCM.What is the rate of GST on GTA?
What is the limit of RCM on transportation?
Therefore if a total purchase of less than Rs. 5,000 is made in one day from unregistered person then there is no requirement to pay tax on RCM. This limit is total of Rs. 5,000 from all suppliers and not per supplier.
A transporter must obtain a GST registration based on their aggregate turnover exceeding INR 20 lakhs or INR 10 lakhs for a unique category in a financial year. GTA has to pay 12% GST on all the GTA services for the financial year provided by them.16-Mar-2021
Which transportation is exempt from GST?
Services related to transportation of goods by road are exempt from tax except the services of GTA (Goods Transport Agency) or Courier Agency. 2. Services related to transportation by way of inland waterways.
A transporter must obtain a GST registration based on their aggregate turnover exceeding INR 20 lakhs or INR 10 lakhs for a unique category in a financial year. GTA has to pay 12% GST on all the GTA services for the financial year provided by them.16-Mar-2021
What if RCM is not paid?
The person cannot take the plea that there is no revenue loss if he had not paid the RCM liability because if he pays RCM liability then the same time, he will avail input tax credit.31-Aug-2020
Freight costs are also known as freight charges or freight rates. It is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location.
What is GST rate on freight?
5%
2.1 “As per Section 17(5) of the CGST Act, 2017, input credit can not be availed on Motor vehicles used for transportation of persons having approved seating capacity of not more than 13 persons (including the driver) including leasing, renting or hiring thereof.01-Feb-2022
Which services comes under RCM?
SERVICES UNDER REVERSE CHARGE AS APPROVED BY GST COUNCIL
Is RCM applicable on courier services? However, in case of courier service, provision of reverse charge is not applicable; supplier of service is required to charge tax from recipient under forward charge.04-Sept-2022
How can I get transport ID?
To obtain a Transport ID, the transporter must give submit information and document for enrolment on the e-way bill portal. The EWB system generates the transporter ID after furnishing the required information.
The Reverse Charge Mechanism (RCM) is the process of GST Payment by the receiver instead of the supplier. In this case, the liability of tax payment is transferred to the recipient/receiver instead of the supplier. Latest Update.27-Jul-2022
What is the penalty for not registered under GST?
Failure to register under GST will result in a fine of Rs. 10,000. In addition, the Input Tax Credit during the delay period will be lost.
It must be noted that if the recipient of the freight service does not fall within the above specified category, GTA would be liable to pay GST on freight charges. In such case, GTA has two options either to pay GST @5% without availing the benefit of ITC or to pay GST @12% and avail benefit of ITC.29-Jan-2019
Is reverse charge compulsory?
There is no threshold limit applicable for reverse charge. It is a mandatory registration as per Section 24 of the Act.24-Jul-2020
8. Can we claim ITC on RCM in same month? Yes, you can claim the Input Tax Credit on RCM in the same month, when you paid the GST under RCM.
Can we claim refund of RCM paid?
Yes. You can claim refund. See Section 54 (8)(e) of CGST ACT.22-Jan-2022
Road Transportation The complete load is calculated based on the distance between departure and destination points and market conditions. In partial freight transport, after determining the volumetric weight of the cargo, the weight to be applied in freight pricing is calculated.11-Dec-2020
How do I calculate freight charges?
Freight Shipping Rates Are Calculated Based On:
How do I charge GST on transportation?