Reverse Charge

Shokeen Saifi
watch_later 3 years, 2 months ago

Dear All,

Under reverse charge how is to be passed entry in the books of account. kindly assist me I am writing below questions. 

Q-1. I pay freight in cash for Rs.6500 per day on the purchase of goods in local.

Q-2. I charge freight on Bill because I pay freight advance to driver or transportation on behalf of buyer.

Q-3. I charge freight on bill because I pay freight advance to driver or transportation on behalf of buyer but in the same bill I charge gst 18%, 5%, 28% on the goods so what rate have to be charged on freight ??

kindly assist me with the journal entry  

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    Is GST applicable under RCM on payment of Certification Fees to Utkal Chamber of Commerce...???? - Kuna Mohanty
1 Answer

Kuna Mohanty watch_later 3 years, 2 months ago

Ans to Q no.1. Dear Saifi, You need to pay GST under RCM for GTA Service availed.

Ans to Q no.2. If your supplies falls under more than 5% tax bracket it is advisable, ask your buyer to arrange the transporter for transportation of goods, otherwise the freight also will be the part of your taxable supply. 

Ans to Q no.3. It is composite  supply and supply of goods is a principal supply, therefore the rate of tax on freight will be the rate of tax of your principal supply.

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