CARRIAGE BILL

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This query is : Resolved

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This discussion addresses whether a distributor can claim Input Tax Credit (ITC) on GST charged by transporters for freight. The consensus is that if the transporter charges GST on their bill, ITC is claimable, and Reverse Charge Mechanism (RCM) does not apply. However, the transporter charging 5% GST is noted as incorrect, with advice to clarify with the transporter and check GSTR-2A/2B for classification.

Priyanka Roy

Priyanka Roy (Querist)

22 January 2022 WE ARE A DISTRIBUTOR. EVERY TIME WE PURCHASED GOODS WE HAVE TO PAY FREIGHT AMOUNT AGAINST OUR MATERIAL CONSIGNMENT. SO, PLEASE SUGGEST ME WHEN TRANSPORTER CHARGES 12% GST ON FREIGHT VALUE, CAN WE CLAIM ITC ON THAT GST or it is under RCM. AND ALSO WHEN TRANSPORTER CHARGES 5% GST ON FREIGHT VALUE, CAN WE CLAIM ITC OR IT IS UNDER RCM METHOD. PLEASE SUGGEST.

CA Puja Sharma

CA Puja Sharma (Expert)

22 January 2022 If the transporter is charging GST on his bill then in both the cases you are not liable to pay under RCM.

CA Altamush Zafar

CA Altamush Zafar (Expert)

23 January 2022 There is no RCM if the tranporter is charging GST and you can take ITC. But where the transporter is charging 5% it is wrong. It should be 12%. Clarify with you transporter. You can also check in your GSTR-2A/2B whether he classifying it under RCM or not.

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