FREIGHT INWARD WITH RCM

There are two points-

1. If you pay freight charges that are already charged by your supplier in invoice of goods, then you need not to pay RCM. Just book freight as direct expense.

2. If you pay freight directly to transporter and transporter doesn't charge GST then you will have to pay GST on RCM basis (If you are registered under GST or liable to get registration under GST). In this case also book freight as direct expense, and ITC of GST paid under RCM shall be allowed to you.

@ Anup My client is into the business of trading de-oiled bran(DOB). When my client is purchasing from supplier, he is giving invoice for DOB and paying half of the freight amount to transport and for the rest of the transportation he is giving freight bill to my client to pay for transporter, and for that half of the transportation cost supplier giving credit note my client. And my client is moving goods to his customers and ask them to pay the freight. In this case whether my client is liable to pay GST on RCM basis??

Mr. Ramaraju,

In short your question is-

Supplier charges full freight to your client through it's invoice, and then issue credit note for half freight amount to your client. And Transporter is issuing it's invoice to your supplier and not to your client.


if situation is same as above-
Then your client need not to pay GST under RCM.