After clearance goods transported to own godown

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686 Points Joined August 2018
Imported goods transported from custom depot / warehouse to own godown/ factory after clearance, is RCM on transport is applicable.

Both consignor & consignee are same .
Is this transaction consitute supply
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On 12 July 2024 at 15:49 Report
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Master in Accounts & high court Advocate
8866 Points Joined December 2011

In this scenario, where the imported goods are transported from a custom depot/warehouse to the importer's own godown/factory after clearance, Reverse Charge Mechanism (RCM) on transportation is not applicable. Since the consignor and consignee are the same entity (the importer), this transaction does not constitute a supply as per the Goods and Services Tax (GST) Act. The transportation of goods from a custom depot to the importer's own premises is considered a "self-transportation" or "own use" scenario, which is not subject to GST. However, it's important to note that if the transportation service is provided by a third-party transporter (not the importer themselves), the importer may need to pay GST on the transportation service under RCM, if the transporter is not registered under GST. To summarize: - No RCM on transportation if consignor and consignee are the same (importer). - No GST applicable on self-transportation/own use. - If a third-party transporter is involved, GST may apply under RCM if the transporter is not registered under GST.

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On 30 September 2024 at 14:56


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