Rcm on gta services gst rate and rcm exempt on govt.supply

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Shahadat Khan (Querist)
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07 September 2019 SIR,
We are engage in manufacturing of Railway Equipments and directly supply in Railway Coach Factory in India.
Our question
1.We send our products to Railway Coach Factory through transport agency and pay freight charges to transport agencies but we do not pay any RCM because our supply to directly Govt.Dept.why are you pay RCM?.
2.If we pay RCM 5% or 12% ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 September 2019 RCM not applicable in this case. If freight charges collected separately charge gst on it the rate applicable to supply of materials.

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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08 September 2019 RCM is applicable in your case. If you are paying freight, RCM is applicable to you. Rate of RCM is 5%. However if GTA is opting for forward charge then RCM is not applicable to you ans you shall be paying 12% GST on forward basis.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 September 2019 RCM applicable in this case Pay 5% and claim ITC. Charge GST on freight charges made in the invoice at the rate applicable to the materials.

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