GST AUDIT

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This discussion clarifies whether GST's Reverse Charge Mechanism (RCM) applies to transportation expenses for petrol and diesel. While petrol and diesel themselves are VAT items and outside GST, RCM can still apply to transportation charges paid separately to a transporter. However, specific exemptions exist, such as for agricultural produce, low-value consignments, milk, salt, food grains, and newspaper transport. If the transport isn't handled by a Goods Transport Agency (GTA), RCM is generally not applicable.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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06 January 2020 TRANSPORTAION EXP PAID FOR THE TRANSPORT OF PETROL AND DIESEL SHOULD WE PAY RCM IN GST ON TRANSPORTATION EXP FOR TRANSPORT OF PETROL DIESEL AS PETROL AND DIESEL ARE VAT ITEM ..??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2020 GST not applicable on transport of petrol and diesel.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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07 January 2020 If transportation charges paid separately to the to the transporter , GST RCM applicable @ 5% even if diesel / petrol out of GST.

Transportation of following goods only exempted from GST

1) Agricultural produce

2) Goods where the consideration charged is not more than 1500/- on a consignment in a single carriage

3) Goods where the consideration charged is not more than 750/- for a consignee for all such goods.

4) Milk, salt & Food grain including flour, pulses, rice.

5) Organic manure

6) Newspaper or magazines

7) Relief material for man-made disasters etc.

8) Defence or Military Equipment.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2020 Not transported by GTA hence RCM not applicable.. Such transport not done by GTA hence exempt from GST.

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