Rcm on freight

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2017 Dear Sir,
I have following queries regarding RCM on freight.

1. Suppose freight is Rs. 3500/- then RCM would be applicable or not as it is below Rs. 5000/-

2. Suppose freight paid to individual owner of single truck is Rs. 5500/-. Whether RCM would be applicable or not as single truck individual owner is not fall in the category of GTA.

Please clarify.

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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11 August 2017 Exemption of Rs.5000 expenses per day is applicable only on Inward supplies from unregistered dealer and not applicable on GTA RCM.

On GTA RCM mandatory

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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11 August 2017 1. RCM not applicable for GTA.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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11 August 2017 1.If individual owner issues builty then only he falls under GTA

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 tax paid on freight under RCM would be eligible as ITC against output tax liability?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 August 2017 Yes, ITC available.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 whether RCM is applicable on the freight paid to a hand driven cart owner

RAJA P M

RAJA P M (Expert)
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12 August 2017 @ CA Vinoth Kothari Sir & CA Rashmi Gandhi Madam.... (1. RCM not applicable for GTA) then what is the meaning of Above Rs. 750 is tax under RCM from GTA services.....

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 Single GTA Consignment note less than 750 is exempt from GST. It will not form part of either RCM on GTA or within the limit of 5000

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RAJA P M

RAJA P M (Expert)
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12 August 2017 Then what is the meaning of above said 1. RCM not applicable for GTA....?

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 RCM on hand driven cart owner freight

Firstly GTA means a transporter who issues consignment note or bilty or lorry receipt on which gst on RCM is 5%. Any freight charges without consignment note is delivery charges and if the same is paid to unregistered dealer then you have to pay RCM @18% this can be part of your 5000 exemption limit.

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CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 @Raja RCM not applicable on GTA in what context

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RAJA P M

RAJA P M (Expert)
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12 August 2017 Yes. I agreed. Thank you for the Reply Sir... It means, Received from GTA above Rs 750. It's under RCM. It's not applicable in Rs. 5000 limit. am I right Sir....?!

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 Yes you are right Raja

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