RCM on Freight

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402 Points Posted on 14 September 2020
Is RCM applicable on Freight in case the GTA is registered and uploaded in GST and in RCM coloum of GSTR 2A RCM is yes in this case the GTA is registered and he gives Invoice Hence is RCM applicable as the GTA is registered.
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On 14 September 2020 at 14:49 Report
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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on freight services provided by Goods Transport Agencies (GTAs). Generally, RCM is not applicable if the GTA charges GST at 12% on their invoice. However, if the GTA does not charge GST, then RCM at 5% is applicable, and the recipient must pay the GST.

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137 Points Posted on 14 September 2020
Rcm is not applicable in your case.
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On 14 September 2020 at 14:59
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Finance Professional
491 Points Posted on 14 September 2020

Yes, RCM applicable, if you are a Corporate firm.

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On 14 September 2020 at 16:35
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Chartered Accountant
1147 Points Posted on 14 September 2020

In case of GTA there are 2 options:

1. GTA charging GST @ 12% - RCM is not applicable if GTA is charging 12% on invoice

2. No GST is charged on invoice by GTA - GST to be paid under RCM @ 5%

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On 14 September 2020 at 19:45
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Tax and Business Consultant
11616 Points Posted on 15 September 2020
Yes, RCM is applicable...
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On 15 September 2020 at 00:05

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