RCM

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for GST on air freight. Generally, air freight services for imports and exports are exempt under specific conditions. However, RCM applies to air freight charges paid to a Goods Transport Agency (GTA) if the consignment value exceeds Rs. 75,000 per shipment, with a GST rate of 5%.

farizuddin

farizuddin (Querist)
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21 January 2021 gst will take rcm on air freight or not

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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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,

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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Aashok Kumar Sharma online

Aashok Kumar Sharma

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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.

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