RCM-tranportation

This query is : Resolved

CA Nidhi Kanabar (Querist)
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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?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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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