RCM on Freight charges to local transport

Any RCM required to pay on local transport to paid to unregistered person
Replies (5)
Quick Summary
This discussion clarifies when Reverse Charge Mechanism (RCM) applies to local transport charges paid to unregistered persons. Generally, if the transporter is not a Goods Transport Agency (GTA) issuing a consignment note, RCM GST is not required. RCM liability typically arises when transportation services are provided to a business entity, with specific relaxations currently in place.

If such transporter is not a GTA (i.e. not issuing any consignment note) then no need to pay GST under RCM
It will comes under RCM basis if provided transportation to any specified person
For unregistered person RCM as GTA is not there's for them
No need to pay RCM under gst to unregister person , rcm liability will arise if transportation provided to any business entity

Currently there are some relaxations for RCM (Reverse Charge Mechanism ) payment. So if the transporter is not a GTA then RCM payment is not required

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register