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
- Medical reimbursement of hospitalization
- Where to show STCG on Silver ETF in ITR2
- KVP (KISAN VIKAS PATRA ) Matured in F.Y. 2024-25
- STCG ITR filing for ETF SILVER
- PTEC Registration
- Accounting for non refundable grant received under National Livestock Mission Scheme.
- CAPITAL GAIN ITR
- Individual received money from father need to show in itr
- Cash deposit in individual account more than one crore in FY24-25
- Excess tax paid against liability us140b and itr us 139(8a)
- ERROR SHOWN IN ITR 3 AFTER VALIDATION
- EXCESS CREDIT REALTED GST REVERSAL
- Income Tax and FEMA Implications for Receiving Equity Stake in a UK Company as CTO
- Crumb Rubber
- HUF Gifts
- Need Help for US CPA
- ITC Liability on Capital Goods on death of Proprietor (GTA)
- Subject: Clarification on Applicability of E-Invoicing and 30-Day Reporting Requirement under GST
- GOODS SENT TO INTERSTATE BRANCH FOR EXHIBITION ON DELIVERY CHALLAN & GOODS RETURN BACK
- TRUST QUERY INCOME APPLIED
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
