Our dealer is registered under composition scheme. He has paid transport charges worth Rs. 50000/-. Now will he have to pay GST under reverse charge & at what rate?
Reply
When GTA (registered or unregistered) provide service to a person registered in GST, 5% GST is applicable under RCM.
Therefore, composition scheme dealer has to pay tax under Reverse Charge Mechanism for transportation service.
Further no ITC is available for tax paid under reverse charge for a composition dealer. |