RCM is applicable or not (labour Charges , loading and uloading charges)

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on labour, loading, and unloading charges. RCM is applicable if these services are provided by a GTA as part of transportation, at a 5% tax rate without input tax credit. For unregistered suppliers who are not GTAs, RCM is generally not applicable after September 2019.

ARCHANA

ARCHANA (Querist)

18 April 2025 Sir/Mam,

If any one paid loading and unloading charges and labour charges RCM is applicable or not? if applicable what is the tax rate.

Plz explain

Thanking you,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 April 2025 RCM applies if provided by a GTA as part of transportation services at 5% (without ITC).

For non-GTA unregistered suppliers, RCM is generally not applicable post-September 2019.

Message likes : 1 times

ARCHANA

ARCHANA (Querist)

21 April 2025 thank you sir for your reply

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 April 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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