Rcm on freight charges

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This query is : Resolved

MAHESHA R (Querist)

15 November 2018 Dear Expert

We have received registered dealer service for freight in this we have to pay RCM is it required to pay IGST or CGST & SGST.

kathir

kathir (Expert)

15 November 2018 The person who is paying the freight charges, liable to pay GST under RCM. in this case RCM applicable.
IGST applicable if the transaction made inter-state
CGST + SGST applicable if the transaction made intra-state.

Hope you can understand.

MAHESHA R

MAHESHA R (Querist)

15 November 2018 Ok sir and if we get service from local un register service provider for interstate movement, in this case IGST or cgst sgst sir

kathir

kathir (Expert)

15 November 2018 Unregistered person cannot make inter-state transaction sir.
If bill-to-ship to transaction made by a person , the place of supply is vendor address only not place of destination. In simple words, buyer and seller address mentioned in the invoice is same state, CGST+SGST applicable Vice-versa IGST applicable.
Hope you can understand sir.

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