RCM on Exempt Goods Freight Charges

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on godown rent and freight charges. For rental income, the landlord is liable for GST regardless of tenant payments. Regarding freight, transportation of exempt goods like rice, pulses, and food grains is generally not subject to GST, meaning RCM should not apply in these instances.

Mahajan Group

Mahajan Group (Querist)
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30 October 2021 I Am an employer and having my commercial property which i have given for rent in the year 2017-18, renter's income is under 20 lakh he is not paying me gst now i got Gst notice and officers are asking me to pay rcm ON godown rent received from jul to 12th Oct 2017 and also I am a dealer of Basmati Rice so I am paying Frieght to the Transporters on Gst and Non Gst both Products so officers also telling me to pay RCM on Frieght Charges.

Please suggest me is there any clause for GST on Transport Frieght Charges of Rice Exempt and non Exempt goods

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 October 2021 RCM not applicable in both the cases.
Exempted GST on transportation of milk, salt, food grains.

No GST payable on transportation of salt. Transportation of food grain including flour attracts nil rate of GST. No GST is imposed on transportation of rice and pulse.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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31 October 2021 Where you have given property on rent then you are the supplier of rental service therefore the liability of GST is on you whether the tenant fives you the money or not.
As far as freight is concerned it is exempt for rice

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