Rcm on transportation

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This query is : Resolved

VICKY TEJRAM NARAD (Querist)

13 April 2019 Dear Sir,

I would like to ask question regarding RCM on transportation charges. I am registered in Maharashtra under GST. If i am purchasing Goods from Gujrat. The supplier hire transporter from Gujrat. RCM liability paid by receiver under GST. Tell me RCM will be IGST 5% or CGST 2.5% and SGST 2.5%. Which tax i have to pay. Both supplier and Receiver are registered under GST. Please advise me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 April 2019 RCM will be igst 5% being place of supply is interstate.

Mahesh Paryani

Mahesh Paryani (Expert)

13 April 2019 I Agree with the view of CA R SEETHARAMAN. to add in if you read section 9(3) of CGST act "The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and

[all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both."]

The last statement clarifies the position of the law

Regards
Mahesh Paryani (9960497148 what's app only)

Rajnish Singh

Rajnish Singh (Expert)

14 April 2019 Dear Sir,

The First Condition to charge RCM is Consignment Note. If Transporter make Consignment note in your name along with Bill than you have to pay RCM. Second if Transporter raise Bill in your supplier name and supplier charge Freight on invoice ...in this case Consignment note will be in the name of Supplier and supplier is recipient and he will pay RCM.

Third important thing if Consignment note and Transporter bill is To pay basis ....in this case your have to pay RCM and if state is differ than you will pay IGST @5% . First you will pay and than you can take input .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 April 2019 Yes your observations are right.

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