Rcm on transportation charges
This query is : Resolved
LALIT NARAYAN DHUMAL
(Querist)
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.
CA Rashmi Gandhi
(Expert)
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.
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