RCM - Freight paid by a registered GTA to another GTAGST

Murugesan (Tax consultant) (43 Points)

09 January 2020  

Dear Experts,

Inward Freight charges paid by a registered local GTA (on behalf of corporate customers) to another GTA based in northern states and that amount will be collected along with service charges from their corporate customers (for example GTA paying 1 lakh and raise invoice for Rs.1,01,500/- (1500 service charges per LR) + GST @ 12%.

Kindly clarify, whether RCM is applicable to a registered local GTA for the above freight.

Thanks & Regards: Murugesan M