RCM-tranportation
This query is : Resolved
CA Nidhi Kanabar
(Querist)
16 February 2026
An employee is transferred from Mumbai (Head Office) to Gujarat (Factory). The Head Office in Mumbai pays the transportation charges to a GTA for shifting the employee’s household goods from Mumbai to Gujarat.
Whether GST is payable under Reverse Charge Mechanism (RCM) in this case?
If RCM is applicable and GST is paid by the Head Office, whether ITC of such tax paid under RCM is available, or will it be blocked under Section 17(5) as personal consumption?
Whether GST is payable under Reverse Charge Mechanism (RCM) in this case?
If RCM is applicable and GST is paid by the Head Office, whether ITC of such tax paid under RCM is available, or will it be blocked under Section 17(5) as personal consumption?
17 February 2026
GST is payable under RCM by the Head Office for GTA services. While ITC is technically defensible as a business necessity, it is frequently challenged by the department as "personal consumption" under Section 17(5)(g).
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