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Rcm on freight

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CA CHETAN GUPTA

426 Points Posted on 04 May 2018

Freight paid by Registered Dealer. Now RCM has to be Paid by Him.

Buyer (Mumbai) is a Registered Dealer under GST, Seller (Delhi) is also Registered Dealer under GST, Transporter is not Registered. Transporter maybe from Delhi or from Jaipur (Raj.) or from Mumbai.

Now if the Buyer pays GST on RCM Basis on Freight. Then Whether CGST & SGST will be applicable or IGST will be applicable??

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Whether RCM on Frieght has to be Paid on Purchase of TAX FREE Goods ?

Replies (1)

CA Shivam Arora

Chartered Accountant

1405 Points Posted on 04 May 2018

1)Location of supplier(GTA)-Mumbai

Place of supply-Mumbai(in case of transportation of goods POS is location of recipient if such recipient is registered. In this case recipient is the registered buyer in Mumbai)

Therefore, it will be treated as intra-state supply and thus CGST and SGST is applicable.

2)If Location of supplier(GTA)-Other than Mumbai

Place of supply-Mumbai(reason same as above)

Therefore, it will be treated as inter-state supply and thus IGST is applicable.

3) RCM on freight to be paid when GTA has provided service to you and give u a bill stating that tax to be paid under RCM and other conditions are also to be satisfied like issue of consignment note by GTA etc.