RCM on cargo handling charges

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This discussion clarifies when Reverse Charge Mechanism (RCM) under GST applies to cargo handling charges. It confirms that RCM is attracted only on bills related to the transport of goods. If cargo handling expenses are included in the goods transport bill, the total amount is liable for GST. Bills solely for cargo handling or petty expenses, without goods transport, do not attract GTA RCM.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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31 July 2020 There are two bills named xyz & pqr. The bills details as under

xyz details-

goods transport cost -25000

pqr details

cargo handling exp.& petty exp-4000

my question is in above which bill GTA attract.
Is on XYZ or PQR , or both bills

according to my knowledge only goods transport related
bill attract RCM GST. If in XYZ bill cargo handling exp. is includes
then 25000+4000 total 29000/- amount liable for GST.
PQR bill not transported any goods .Hence not attracted GTA RCM

please clear my doubt

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 July 2020 Yes you are right.
only goods transport related bill attract RCM GST. If in XYZ bill cargo handling exp. is includes then 25000+4000 total 29000/- amount liable for GST. PQR bill not transported any goods .Hence not attracted GTA RCM