rcm on freight
This query is : Resolved
MOHAMMED ASGAR Bhati
(Querist)
11 August 2017
if i am registered under gst in Rajasthan and i purchased goods from Maharastra with registered dealer. freight amount 10000/- paid by me. transporter address mentioned on bilty Delhi.
now i want to know that rcm charged on freight as igst or sgst & sgst.
CA. Vinodh Kothari
(Expert)
11 August 2017
Asgar you have to charge CGST and SGST
VK
VK
MOHAMMED ASGAR Bhati
(Querist)
11 August 2017
in above case transporter,s addresd in bilty (west bengal ) then i have to charge igst as reverse charge ????????
20 July 2025
What GST applies under RCM on freight?
GST on freight services under RCM depends on the place of supply of service.
Place of supply for transportation of goods (other than by vessel) to a registered person is the location of the recipient (Section 12(2) of IGST Act).
So, the place of supply = Your location (Rajasthan).
What does this mean for RCM on freight?
If transporter is located in another state and you are in Rajasthan, then:
You will pay CGST + SGST under RCM.
Because place of supply is in Rajasthan, intra-state GST applies (CGST + SGST).
If transporter’s address is in a different state (like West Bengal or Delhi):
Still, place of supply is your state (Rajasthan), so CGST + SGST on RCM basis.
NOT IGST because IGST applies only on interstate supply where place of supply differs from recipient’s location.
GST on freight services under RCM depends on the place of supply of service.
Place of supply for transportation of goods (other than by vessel) to a registered person is the location of the recipient (Section 12(2) of IGST Act).
So, the place of supply = Your location (Rajasthan).
What does this mean for RCM on freight?
If transporter is located in another state and you are in Rajasthan, then:
You will pay CGST + SGST under RCM.
Because place of supply is in Rajasthan, intra-state GST applies (CGST + SGST).
If transporter’s address is in a different state (like West Bengal or Delhi):
Still, place of supply is your state (Rajasthan), so CGST + SGST on RCM basis.
NOT IGST because IGST applies only on interstate supply where place of supply differs from recipient’s location.
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