RCM on Freight RCM

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This discussion clarifies whether a partnership firm registered under GST needs to pay Reverse Charge Mechanism (RCM) on freight charges for goods transported by an unregistered local vehicle. The key factor is the issuance of a Consignment Note by the transporter. If a Consignment Note is provided, RCM is applicable on GTA services. If not, RCM is not required, but it's advisable to retain the simple note as evidence for the assessing authority.

Rajiv Jain

Rajiv Jain (Querist)
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10 September 2023 We are traders registered (Partnership firm) in GST as regular. Purchases goods from supplier X, he delivers us Goods through a local loading vehicle (not registered, not a proper transport) without any billty. He attached a simple note with bill to pay freight say Rs. 2000.00. We paid Rs.2000.00 as freight to transporter. Is this liable for RCM.
If not, what evidence should we precure to satisfy Assessing authority that this is not liable for RCM.

RAJA P M

RAJA P M (Expert)
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11 September 2023 RCM not applicable in this transport services. Keep the same simple note.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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11 September 2023 Basically RCM is payable on GTA Services Provided transport issues you Consignment Note (Condition to be eligible for document to be Consignment note is mentioned by GST Rules).
if you do not have Consignment note then you are not required to Pay RCM.

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