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gst under rcm on transport freight

07 February 2018

a road transport has branches allover india,let its head office be at kolkata and a consignment is booked from its Delhi branch to Guwahati branch,the consignee at Guwahati pays freight to Guwahati branch,now is liable to pay gst under RCM,what he shall pay igst or cgst nd sgst ?

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3 Replies

Heena mangtani (Chartered Accountant) (272 Points)
Replied 07 February 2018

igst ..

Joswin Punchakunnel (Chartered Accountant) (314 Points)
Replied 07 February 2018

Where both supplier and receiver are in India place of supply of transportation of goods shall be:
1.Location of the registered person(Service recepient) or
2. Where the service recepient is not registered, it shall be the location at which goods are handed over for their transportation

In this case since it is provided that RCM is applicable, it is assumed that the consignee is a registered person. (Kindly note that the person who pays the freight shall be considered as service recepient. )

Therefore place of supply is guvahati. Therefore it is an intra state supply. Hence he shall be liable to pay CGST &SGST