Gst on good transport services

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This query is : Resolved

BHARATI NAVAGHANE (Querist)

21 November 2025 i have a client who is a transporter and charging under rcm, now he bills to other transporters who also are charging under rcm, now the recepient operating under rcm has to pay for bills generated by the other transporter supplier under rcm and as he is not under forward charge he cannot use the rcm paid, now the recepient is asking my client to refund the amount paid by him under rcm kindly give a solution what is to be done

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 November 2025 Clarify Invoice Structure:
Ensure your client’s invoices do not show GST under RCM as a recoverable amount. It should only mention:
“GST payable under RCM by recipient” — so there’s no confusion that your client is charging GST.
• Communicate to Recipient:
Explain that the RCM tax paid is a government liability, not a payment to your client. Hence, refund cannot be given by your client.
• Option for Forward Charge:
If the recipient wants to utilize ITC, he should opt for forward charge (by filing declaration under GST). Then he can charge GST and claim ITC.
But this requires a change in his compliance approach, not your client’s.

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