Rcm

This query is : Resolved

jagdish (Querist)
Follow

27 August 2017 R/ sir, pl guide me about how rcm is apply. I have a business where all the goods i receives via transports, a daily or 2-3 times a week i have to pay about 600 to 700 againts luggage n hamali. A monthly average is about 4000- to 5000.pl advice about rcm.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

27 August 2017 If you pay for freight against transport with builty then you have to pay tax under RCM. However if amount of builty is less than Rs.750/- then same is exempted.

jagdish

jagdish (Querist)
Follow

27 August 2017 Thanks.what is the logic of rs.750/- pl reply.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
Follow

20 July 2025 Why ₹750?
The government introduced this threshold limit to reduce compliance burden on small freight transactions.
It avoids taxing very small freight charges repeatedly, making it simpler for businesses and transporters.
So if your daily freight/luggage charges are below ₹750 per transaction, no GST under RCM is applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now