RCM on Transport services

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for exempted suppliers hiring transport services on a monthly basis. RCM applies if you are an exempted supplier hiring a goods transport vehicle from a Goods Transport Agency (GTA), even without a specific lorry receipt. However, if the service provider is not a GTA, standard GST rules apply, with the supplier liable for the tax.

Nitin Khaire

Nitin Khaire (Querist)
Follow

19 April 2025 If we are an exempted supplier and hire a transport vehicle on a monthly basis without a lorry receipt for this purpose, will Reverse Charge Mechanism (RCM) be applicable?"

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

20 April 2025 he service of renting a goods transport vehicle (with or without operator) by a GTA is taxable under RCM when the recipient is:
A registered person (even if exempted under GST), or
A government entity, or
A business entity (whether registered or not).

If the service provider is not a GTA (e.g., a normal car rental company), the liability to pay GST is on the supplier (not under RCM).

RCM applies if you are an exempted supplier hiring a goods transport vehicle (with/without operator) from a GTA.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 September 2025 Good luck.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!