Input Credit On Freight Under Rcm In F.O.R Bill


RAJAT VERMA
watch_later 3 years, 7 months ago

SIR,

KINDLY CALIRIFY AS UNDER:

1.)COST OF PRODUCT Rs.7000PMT

2.) FRIGHT :- Rs.3000PMT

3.) MY SERVICE CHARGES :- Rs.100PMT

TOTAL VALUE :- 10100PMT

GST @ 18 % :- Rs.1818PMT

G.TOTAL :- Rs.11918PMT

NOW I DEPOSIT THIS GST OF Rs.1818PMT TO GST DEPT. THEN WHAT WILL BE MINE STATUS FOR AVAILING ITC UNDER GST. WHETHER I WILL BE ABLE TO TAKE FULL 18% INPUT ON ABOVE  F.O.R BILLING OR NOT. 

AND WHAT GAT ON FREIGHT SHOULD I BOOK IN MY BOOK OF ACCOUNTS.

REGARDS 

RA VERMA

  • chatComments
    You have given details of purchase invoice or sales invoices? - Pulkit Sharma
    sir this is sales invoice. - RAJAT VERMA
1 Answer

RAJAT VERMA watch_later 3 years, 7 months ago
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sir, basically we have a query on the GST to be charged on freight  in F.O.R bills and my gst liability at the time of booking freight and set of amount under RCM system for input tax credit:
 
we are channel partner  of RIL for pet coke and give you sale and purchase entry for the same to clarify  our problem:
 
PURCHASE ENTRY
 
COST OF PET COKE    RS 7000/-PMT
GST  @18%                   INPUT TAX AVALAIBLE
FREIGHT                        SAY 3000/-PMT
GST ON FREIGHT          5% MY LIABILITY(accrued)
 
SALE ENTRY (MY CUSTOMER WANT F.O.R BILL)
 
COST OF COAL                          7000/-PMT
MY SERVICE CHARGES               100/-PMT
FREIGHT                                     3000/-PMT
GST ON TOTAL RATE                 18%(INPUT TAX CREDIT    
                                                       WILL BE AVAILABLE TO THE CUSTOMER.
 
Now the point is this     
1)    will 18 % gst charged on freight in f.o.r bill will be set of against 5% accrued at the time of booking freight andwe deposit difference of gst amount.
 
or
2) I deposite full 18@ gst ., which i have charged from customer to govt then 5% accrual stands nil or that is extra liability on my hand and i get rcm benefit for input tax credit.
 
3)OR MY TOTAL TAX LIABILITY IS 23 % on freight component  but i will get tax benefit of 18% only and balance 5% gst on freight becomes  cost of purchase.
 
Pl clarify the same so we may proceed further
 
regards
 
RA VERMA
 
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