Dear Al,
I am having a bit doubt on GTA. Let take an example: i supply goods of (500kg @ Rs.20 ) Rs. 10,000.00 and freight of (500 @ Rs.4) Rs. 2,000.00 which becomes Rs. 12,000.00 and adding 18% GST i.e., Rs. 2,160.00 (1,800.00+360.00) therefore my Invoice Value is Rs. 14,160.00. Freight is on Freight Paid Basis which means I will be paying the Freight amount.
Now I have charged the Freight on Invoice (500kg @ Rs. 4) Rs. 2,000.00 and received GST amount by party Rs. 360.00. But as per my agreement with transporter they have raised a bill of (500kg @ 3.00) Rs. 1,500.00. Now my liability is to pay GST on 1,500.00 @ of 5% GST under RCM and to take the credit as well.
So, my doubt is that is Government taking GST twice (no doubt that on both end that is buyer and seller both are taking credit)?
If freight charged is a part of invoice then GST paid on such is available as input tax credit. Whereas if freight is separately charged in invoice then then the 5% gst paid is not available as input tax credit
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