Please provide all information related to Rcm applicability on air freight.
Please provide related govt. Notifications also for reference use. Thanks Ashutosh
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Quick Summary
This discussion clarifies the applicability of Reverse Charge Mechanism (RCM) on air freight charges, specifically for SAC code 996531. It is confirmed that RCM is not applicable to air freight. This is due to a previous exemption notification for the transportation of goods by aircraft from India to outside India, which was in effect until September 30, 2018.
Services by way of transportation of goods by vessel or aircraft from customs station of clearance in India to a place outside India was exempted vide Notification No. 2/2018 - Integrated Tax (rate) dated 25 January 2018. The exemption had been notified with a sunset clause and was applicable till 30 September 2018.