Applicability of RCM

*Provision under GST*
1. Service provided by Goods transport agency by way of transport in a goods carriage of milk, salt and food grain, pulses and rice is exempt

2. GTA services is covered under RCM

*Situation*: I have purchased above items for my business

*Question*: Do I have to pay tax under RCM or is it exempt ?

*My opinion*: It is exempt for service provider i.e. Goods Transport agency and recipient will pay GST under RCM

Please share your valuable suggestions

Thanks in advance
Replies (2)
Quick Summary
This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) under GST for services provided by Goods Transport Agencies (GTAs). Specifically, it addresses whether tax needs to be paid under RCM when transporting exempt items like milk, salt, food grains, pulses, and rice. The consensus is that these services are exempt, and therefore, the recipient does not need to pay GST under RCM.

It will be exempted ....

you don't need to pay tax under RCM and it is exempted 

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