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of payment if it's before receipt of goods & Reverse Charge for notified SOG & SOS u/s 9(3) of CGST & Sec
in case of supply of service under reverse charge the time of supply shall be 5(3) of IGST
determined as per sec 13(3) i.e. date of payment made(Detailed discussion u/s 02. GTA services
12(3)& Sec 13 (3)). CCP 03.02.08.00
CH 3
Hence, Reverse charge is applicable at the time of advance even though actual supply ABC cooperative housing society availed the transport services of Sharma
is yet to take place. Transports Pvt Ltd for transport of goods by road on a consignment agreement.

Rule 52 provides for the issuance of a Payment Voucher in cases where tax is to be Determine the tax implication as per GST
paid on reverse charge basis. Answer:- As per section 9(3) of CGST Act read with relevant notification. Supply of
Services by a goods transport agency (GTA) in respect of transportation of goods by Reverse Charge & ECO
CCP 03.01.07.00 road to-

State answers to the following as in accordance with the provisions of GST Any co-operative society established by or under any law;
pertaining to Reverse Charge: The liability to pay GST shall lie upon the recipient of service as per reverse charge
(i) What are implications to supplier if recipient refuses to pay tax on reverse mechanism. Thus in the given case ABC cooperative housing society shall pay the GST.
charge? If GTA has opted to pay GST @ 5% only then reverse charge will be applicable
(ii) In case supplier has paid GST, is recipient discharged from the liability to

pay tax on reverse charge? CCP 03.02.09.00
(iii) Is GST wrongly paid by supplier available as Input Tax Credit (ITC) to PMC being a local authority registered under Central Goods and Service Tax Act,
recipient? 2017 only for the purpose of deducting tax u/s 51 and not engaged in making any
Answer:- taxable supply of goods or services. PMC availed the transport service of RV
(i)As per sec 9(3) & 9(4) reverse charge is applicable & liability to pay tax is on Transport Company for transportation of goods in a goods carriage by road.

recipient & hence there is no recourse back to the supplier (i.e. it should not be Determine the tax implications as per GST Act.
demanded from supplier) in case of default by recipient to discharge reverse Answer:- As per section 9(3) of CGST Act, 2017 read with relevant notification,
charge liability. Action by Department is only against recipient. Supply of service by a goods transport agency (GTA) in respect of transportation of
(ii) No, As per sec 9(3), even if supplier has somehow paid tax the reverse charge goods by road to- “any person registered under GST Act” then person liable to pay
tax liability must be discharged by the recipient. The recipient must not claim tax is recipient of services as per provision of Act.
credit of tax paid by supplier & supplier can however claim for refund of tax. Provided that nothing contained in this entry shall apply to services provided
(iii) No, As per sec 9(3) of CGST Act , ITC is not available on supplier invoice to by a goods transport agency, by way of transport of goods in a goods carriage by road

recipient. Recipient has to pay tax under RCM & take ITC. However supplier can to-
claim refund of tax erroneously paid. “local authority which has taken registration under the CGST Act, 2017 only for the
purpose of deducting tax u/s 51 and not for making a taxable supply of goods or
services”

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 45
CA Final GST Questioner