Transportation of goods is under RCM this service is procuring from third party

Save Share

This query is : Resolved

Quick Summary

This discussion concerns whether the transportation of goods procured from a third party falls under the Reverse Charge Mechanism (RCM) for GST purposes. The client is providing transportation services to SCCL using third-party vehicles and seeks clarification on RCM applicability. While RCM is confirmed as applicable, the contractor highlights the potential financial burden, as SCCL won't accept GST bills, and the contractor faces losses due to the indirect use of third-party vehicles.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

07 August 2023 transportation of goods is under RCM this service is procuring from third party, whether this is taxable under RCM,
since, client providing transportation to SCCL under RCM, by availing/engaging third party vehicles, whether this payments applicable to RCM or not,

please clarify

RAJA P M

RAJA P M (Expert)

07 August 2023 Yes, RCM applicable.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)

08 August 2023 Thank you sir,
Dear Sir/s, this is additional burden to the client, since the SCCL shall not accept any GST Bill since the service is under RCM and contractor or supplier providing service by engaging other vehicles which are available in the area from time to time, and here in this case the contractor not obtaining/receiving service for his own purpose this is only to providing service to SCCL,

kindly, do examine my point of view and answer me, if tax is applicable it leads to a heavy loss to contractor

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now