RCM libilities

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F&A
39 Points Joined February 2009

Hi, I am an importer and trading of Plants/Trees in India. My goods are transported from Nhava Sheva (Mumbai) to Delhi by road by a registered transporter. I am liable to pay RCM. THANKS

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On 21 January 2025 at 11:44 Report
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Master in Accounts & high court Advocate
9123 Points Joined December 2011

As an importer and trader of plants/trees, you're liable to pay tax under the Reverse Charge Mechanism (RCM) for transportation services availed from a registered transporter.

RCM Applicability RCM is applicable when: 1. _Services are availed from a registered person_: The transporter is registered under GST.

2. _Services are specified under RCM_: Transportation of goods by road is specified under RCM (Notification No. 13/2017 - CT(R) dated 28.06.2017). GST Rate and Liability The GST rate for transportation services by road is 5% (CGST 2.5% + SGST 2.5%).

You, as the importer and trader, are liable to pay GST under RCM. Compliance Requirements To comply with RCM:

 1. _Obtain an invoice from the transporter_: Ensure the transporter provides an invoice with GSTIN, invoice number, date, and other required details.

2. _Pay GST under RCM_: Pay GST at 5% on the transportation charges.

 3. _Report RCM liability in GSTR-3B_: Report the RCM liability in your GSTR-3B return.

4. _Claim input tax credit (ITC)_: Claim ITC for the GST paid under RCM, if eligible.

 Important Considerations 1. _Verify transporter's GSTIN_: Ensure the transporter's GSTIN is valid and active.

2. _Maintain records_: Keep records of transportation invoices, payment receipts, and GST payment challans. 

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On 21 January 2025 at 16:15
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F&A
39 Points Joined February 2009

Dear Sir, Thanks for reply, but services provided by a transport agency for Agricultural produce is exempt under heading 9965 or 9967. Thanks

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On 21 January 2025 at 16:53


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