RCM Exemption - seeds

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A seeds, produce, and trading company operating under GST exemption inquired about Reverse Charge Mechanism (RCM) exemption for transport costs. The expert confirmed that transportation of agricultural produce by a Goods Transporting Agency (GTA) is indeed exempt, citing Sl. No. 21 of Notification 12/2017-Central Tax (Rate). This exemption applies even when the company covers the transport costs, and RCM is also exempt in such scenarios.

Praveenveldhi

Praveenveldhi (Querist)

05 November 2022 Dear Expert,
We operate a seeds, produce, and trading company that is exempt from the scope of the GST. We cover the costs of transporting the seeds both inward and outward. Are we entitled to receive an RCM exemption in this situation ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 November 2022 Yes, RCM is exempt in such a case.

Praveenveldhi

Praveenveldhi (Querist)

07 November 2022 Sir..If you know the notification number, kindly let me know. It will be helpful to me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 November 2022 Sl. No. 21 of the Notification 12/2017-Central Tax (Rate) dated 28.06.2017. In terms of this notification, transportation of agricultural produce by a Goods Transporting Agency (“GTA”) is exempt from tax.

Praveenveldhi

Praveenveldhi (Querist)

07 November 2022 Sir.. The notification saying only about forward charges

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 November 2022 RCM also exempt in such a case.

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