RCM on Freight

This discussion clarifies the rules around Reverse Charge Mechanism (RCM) on freight charges, particularly when dealing with both taxable and exempted goods. It confirms that input tax credit (ITC) can generally be claimed on RCM paid for transportation services, even if the goods purchased are exempt, as the transportation service itself is often taxable. The key distinction is made between the supply of goods and the supply of transportation services.