Gst on delivery charges

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the application of GST on delivery charges, specifically concerning the Reverse Charge Mechanism (RCM). It explains that while delivery charges might seem subject to RCM, the Goods Transport Agency (GTA) exemption limit of Rs. 750 per consignor means RCM is generally not applicable if the total value for a single consignor is below this threshold.

Rajinder Grover

Rajinder Grover (Querist)
Follow

03 March 2020 Can register gta receipt of Rs. 63-00 against delivery charges attract RCM

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 March 2020 Yes it will attract RCM.

Rajinder Grover

Rajinder Grover (Querist)
Follow

04 March 2020 Total value of receipt is 422+63=485
422 freight 63 is delivery charges

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

05 March 2020 Pay RCM on 485..........

Rajinder Grover

Rajinder Grover (Querist)
Follow

05 March 2020 Thanks
But transporter filled only for Rs. 63/- which shows in my GSTR 2A, I surprised that when the exemption limit for gta is Rs. 750/- why I entered the receipt Under RCM

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

05 March 2020 Yes upto 750 no RCM it's exempt.