I run a GST-registered proprietorship in Solar EPC (rooftop installations under PM Surya Ghar Yojana). Need opinion on RCM applicability on freight in three situations:
1. Outward delivery to B2C customers: We deliver via local tempo. Proper tax invoice + e-way bill generated (with vehicle no., driver details). Freight not charged separately — included in overall contract price. No consignment note/LR issued by driver, just fixed amount paid per trip.
2. Purchase from organized vendors (e.g., Livguard): They deliver to our godown with their tax invoice + a yellow transporter slip marked "Freight to be paid by Consignor." We pay only the material invoice value — no freight paid by us.
3. Purchase from local vendors, freight paid by us: Supplier's local tempo delivers to our godown, we pay freight directly to the driver. No consignment note issued — just a handwritten chit with delivery address, nothing else.
Questions:
In Scenario 1, does the e-way bill (with vehicle/driver details) make the tempo a "GTA" even without a consignment note, or is e-way bill irrelevant to GTA status since it's mandatory anyway for any goods movement?
In Scenario 2, does "freight to be paid by Consignor" on the vendor's slip mean we (consignee) have zero RCM exposure since we haven't paid any freight?
In Scenario 3, does absence of a consignment note exempt this transport under Entry 18 of Notification 12/2017-CT(Rate), even though we are the one paying freight?
Any case law/AAR support for or against these positions? Aware of divergent views (e.g., Kisan Sahkari Chini Mills taking a stricter view under service tax) — want to know current dominant position post recent GST rate changes (Sept 2025).
Thanks in advance.
CAclubindia
