QUESTION

 If the transportation service is received from outside the state and freight paid within state then IGST charged on the freight under RCM. If transport service is received from outside the state, so sir how to determine the location of the supplier? and how to determine the applicable CGST and SGST under RCM?

ANSWER

Section 9(3) relating to Reverse charge provides that all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Classification of transaction as Intra-state or Inter state depends on Location of Supplier and Place of Supply. In this transaction Place of Supply according to Section 12 (8) of IGST Act i.e. Place of Registered recipient And Location of Supplier according to above specified statement in section 9(3) is the Location of Recipient.

Thus according to above discussion You will charge CGST and SGST in Reverse charge Invoice.


IGST will become payable on GTA service if tax is being paid on forward charge basis on inter-state basis by the supplier of service. Whenever tax is being paid on reverse charge basis it will always be on intra-state basis i.e. CGST and SGST would be paid