RCM ON FREIGHT

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This query is : Resolved

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This discussion clarifies the applicability of Reverse Charge Mechanism (RCM) on freight charges paid to Goods Transport Agencies (GTA). It confirms that RCM is generally applicable on freight paid separately to a GTA. The conversation also touches upon whether RCM still applies if the freight cost is included within the main invoice for goods and confirms the RCM rate is 5% in such scenarios.

keshav parashar

keshav parashar (Querist)

06 March 2020 Mene 250000 ka goods sell kiya hai or after dilivery mene 20000 freight paid kiya hai to kya mujhe 20000 par RCM deposit karwana padega ya nhi.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 March 2020 Yes RCM applicable on such freight paid to GTA.

keshav parashar

keshav parashar (Querist)

07 March 2020 Agar me Freight alag se paid na kar ke invoice ki rate me hi include kar du to kya tab bhi RCM applicable hoga ?..... or RCM 18 % se hi hona na

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 March 2020 You have included freight in invoice and charged GST at the rate applicable to goods. RCM applicable at 5% if you have paid freight to GTA.

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