Rcm on transportation charges
This query is : Resolved
09 October 2017
Sir..I make accounting for the month of september. For Gst purpose, Can i make accounting without leving RCM on Transportation Charges.This is because Govt. recently abolished RCM upto 31.03.2018. So, Sir, Please guide me.
09 October 2017
RCM u/s 9(4) of CGST Act abolished only not Sec 9(3).
Freight on transportation covered u/s 9(3). So you have to pay tax on it compulsorily.
20 July 2025
Regarding RCM on transportation charges and your accounting question for September:
Background:
Initially, GST law required recipients to pay GST under Reverse Charge Mechanism (RCM) on transportation services (GTA services) received from unregistered transporters.
However, the Government relaxed or exempted RCM on transportation services from unregistered persons temporarily till 31st March 2018 via notifications.
After this exemption period, RCM on transportation services from unregistered suppliers was reinstated.
For your case (September 2017):
Since your accounting month is September 2017, RCM on GTA services from unregistered transporters was exempted till 31.03.2018.
So, you are not required to pay or account for RCM on transportation charges from unregistered transporters for the period before 31.03.2018.
What to do for accounting:
You can make your accounting entries without including RCM liability on transportation charges for September 2017.
No reverse charge GST needs to be paid or accounted on such transportation charges during this exemption period.
However, ensure you have proper invoices or documents to support that your transporter was unregistered and covered by the exemption.
After 31 March 2018:
The exemption period ended.
From April 2018 onwards, RCM on transportation charges from unregistered transporters must be paid and accounted for.
Background:
Initially, GST law required recipients to pay GST under Reverse Charge Mechanism (RCM) on transportation services (GTA services) received from unregistered transporters.
However, the Government relaxed or exempted RCM on transportation services from unregistered persons temporarily till 31st March 2018 via notifications.
After this exemption period, RCM on transportation services from unregistered suppliers was reinstated.
For your case (September 2017):
Since your accounting month is September 2017, RCM on GTA services from unregistered transporters was exempted till 31.03.2018.
So, you are not required to pay or account for RCM on transportation charges from unregistered transporters for the period before 31.03.2018.
What to do for accounting:
You can make your accounting entries without including RCM liability on transportation charges for September 2017.
No reverse charge GST needs to be paid or accounted on such transportation charges during this exemption period.
However, ensure you have proper invoices or documents to support that your transporter was unregistered and covered by the exemption.
After 31 March 2018:
The exemption period ended.
From April 2018 onwards, RCM on transportation charges from unregistered transporters must be paid and accounted for.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Eway bill for machinery reparing
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Income of an individual
- Applicable TDS for Purchase of Flat from NRI
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
