GST Update - Reverse Charge shifted to Forward Charge in respect GTAs opting for payment of GST @ 12%
CA Vikram Khaitan/ARV Group
Please note that Notification No. 20/2017 – Central Tax (Rate) dated 22-08-2017 has been issued amending Notification No. 11/2017 – Central Tax (Rate) dated 28-06-2017, which prescribed rate of GST on supply of Service.
In the said amendment, an option has been given to the Goods Transport Agency (GTA) to pay GST @ 12% and avail full Input Tax Credit on all Goods and Services used for supply of Service. However, the same is subject of condition namely that Goods Transport Agency (GTA) opting for such option will pay central tax @ 12% on all the services of GTA supplied by it i.e. no reverse charge mechanism would apply in such cases.
To give effect to the aforesaid amendment, Notification No. 22/2017 – Central Tax (Rate) dated 22-08-2017 has been issued stating the payment of GST under Reverse Charge Mechanism is applicable only on services received from GTA’s, who have not opted for payment of GST @ 12% i.e. it is applicable only for GTA’s paying GST @ 5%.
Thus the following scenarios stand in view of following amendment –
(a) Pay GST @5% under Reverse Charge Mechanism on Services received from Goods Transport Agency opting for payment of GST @ 5%. In such case, no ITC is available to the transporter, however, full ITC is available to the Service Recipient, subject to Section 17; or
(b) No payment of GST under Reverse Charge Mechanism on Services received from Goods Transport Agency opting for payment of GST @ 12%. The same will be shifted from Reverse Charge to Forward Charge and GTA would levy tax @ 12% on their invoices. Full ITC is available to both GTA and Service Recipient, subject to Section 17.
In case you require any further clarification, feel free to get in touch with us.
Thanks & Regards,
CA Vikram Khaitan
Partner – GST Division
ARVG & Associates, Chartered Accountants
------------------------------------------------------------
D: +91-33-4064 4076; M: +91-98315 86568
Email: vik...@arvsolutions.co.in / in...@arvsolutions.co.in
------------------------------------------------------------
Save the environment. Do not print this Email unless it is necessary - Environmentally ARV Group
Thank you for considering the environmental impact of printing email
BAIN, MILTON ( मिल्टन, बैन )
Further to the trailing mail, illustration is appreciated With respect to:
“(b) No payment of GST under Reverse Charge Mechanism on Services received from Goods Transport Agency opting for payment of GST @ 12%. The same will be shifted from Reverse Charge to Forward Charge and GTA would levy tax @ 12% on their invoices. Full ITC is available to both GTA and Service Recipient, subject to Section 17.”
Respectfully Yours.
From: BAIN, MILTON (
मिल्टन,
बैन )
Sent: 29 August 2017 11:49
To: 'foru...@googlegroups.com'
Cc: Vikram Khaitan
Subject: RE: GST Update - Reverse Charge shifted to Forward Charge in respect GTAs opting for payment of GST @ 12%
Dear Sir,
Is it possible for you to spare some time and provide an illustration, please?
Respectfully Yours.
--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided
by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member
are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
To join and/or to post to this group send email:
foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or
www.eserveonline.net
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to
forum4ca+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
This Message was sent from Indian Oil Messaging Gateway, India. The information contained in this electronic message and any attachments to this message are intended for the exclusive use of the addressee(s) and may contain proprietary, confidential or privileged information. If you are not the intended recipient, you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately and destroy all copies of this message and any attachments.
Kamal Agarwal
To unsubscribe from this group, send email to:forum4ca+unsubscribe@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
This Message was sent from Indian Oil Messaging Gateway, India. The information contained in this electronic message and any attachments to this message are intended for the exclusive use of the addressee(s) and may contain proprietary, confidential or privileged information. If you are not the intended recipient, you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately and destroy all copies of this message and any attachments.
--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
To join and/or to post to this group send email: foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+unsubscribe@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+unsubscribe@googlegroups.com.
Disclaimer:
"The information contained herein (including any accompanying documents) is confidential and is intended solely for the addressee(s). If you have erroneously received this message, please immediately delete it and notify the sender. Also, if you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this message or any accompanying document is strictly prohibited and is unlawful."