Rcm on freight charges

This query is : Resolved

MAHESHA R (Querist)
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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)
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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)
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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)
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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.