Freight Not Charged in GST Tax Invoice by supplier but Issue Separate Freight Bill to us

1) Our Supplier is GST Registered Goods Manufacturer ----   BUT NOT A REGISTERED TRANSPORTER

2) When We purchase Materials ,

a) Supplier Issue us a GST Tax Invoice for Goods ---

                           And

b) Supplier Issue us a Freight Bill separately ( Carrying Goods by Supplier Own Vehicle)

3) Accordingly we Pay RCM on Freight Bill  @ 5%

Question : Above procedure is Correct ???   --- Please reply

 

Replies (1)
No...........it's not correct.

1. RCM is applicable when transportation services is availed by GTA
2. Your supplier has issue separate Invoice for freight & has not Charge GST therein because it's Exempted vide Notification 12/2017 CT.

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