RCM
This query is : Resolved
21 January 2021
gst will take rcm on air freight or not
21 January 2021
Air Freight on Import:
Wide entry no. 19 in Notification 12/2017 of Central Tax (Rate) Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India is exempt.
Air Freight on Exports:
Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India is exempt till 30th September 2020 As per entry number 19A of Notification No 21/2019 of CGST Act, 2017,
21 January 2021
Air Freight on Import:
Wide entry no. 19 in Notification 12/2017 of Central Tax (Rate) Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India is exempt.
Air Freight on Exports:
Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India is exempt till 30th September 2020 As per entry number 19A of Notification No 21/2019 of CGST Act, 2017,
20 July 2025
Is RCM applicable on air freight charges?
Yes, GST on air freight services provided by a Goods Transport Agency (GTA) is subject to RCM.
However, air freight services are generally exempt from GST when the consignment value per shipment is less than Rs. 75,000.
For consignments exceeding Rs. 75,000, GST under RCM is applicable on freight charges paid to GTA.
The rate of GST under RCM on freight is 5% (2.5% CGST + 2.5% SGST) or 5% IGST depending on intra/inter-state supply.
Yes, GST on air freight services provided by a Goods Transport Agency (GTA) is subject to RCM.
However, air freight services are generally exempt from GST when the consignment value per shipment is less than Rs. 75,000.
For consignments exceeding Rs. 75,000, GST under RCM is applicable on freight charges paid to GTA.
The rate of GST under RCM on freight is 5% (2.5% CGST + 2.5% SGST) or 5% IGST depending on intra/inter-state supply.
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