Households luggage

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This query is : Resolved

Quick Summary

GTA RCM depends on treatment. If company pays or is liable for freight, RCM applies even if bill is in employee name. If treated as employee perquisite reimbursement, RCM may not apply.

Rajkumar Gutti

Rajkumar Gutti (Querist)

27 February 2026 Employee house hold luggage transported by gta.
Bill is in the name of employee. Expenses debited under staff welfare expenses. But payment made by company.
Is RCM applicable under GTA service.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 February 2026 Yes, Reverse Charge Mechanism (RCM) is generally applicable in this scenario because the company is the "recipient" of the service, even if the invoice is in the employee's name.
Under Notification No. 13/2017-Central Tax (Rate), the person who pays or is liable to pay the freight is treated as the receiver of the service.
While the bill is in the employee's name, if the company pays the freight, it should technically be the one discharging the RCM liability to avoid disputes during audits.

Rajkumar Gutti

Rajkumar Gutti (Querist)

27 February 2026 Freight is reimbursed to employee.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.

Rajkumar Gutti

Rajkumar Gutti (Querist)

27 February 2026 Freight is reimbursed to employee.
Dr. The staff welfare account
Cr. The employee account
Then
Dr. To Employee account
Cr. The Bank account
This is the real scenario.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 February 2026 If you are debiting it to employee's account as perquisite, then RCM not applicable. But if you are debiting it as freight (paid via employee's acc) RCM will apply.

Rajkumar Gutti

Rajkumar Gutti (Querist)

28 February 2026 Ok, sir, धन्यवाद. I am fully satisfied.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 February 2026 My pleasure.

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