RCM On Freight of Exempted Goods

RCM 8893 views 8 replies
For example, Company A who is register, purchase wheat (exempted goods) from Company B inter- state through GTA.

Now my question is Company A need to pay the rcm on freight or not? Is rcm on freight applicable against the purchase of exempted goods?
Replies (8)
Goods are exempted for that the supplier B has not charged any GST on Invoice ,... but GTA services as per Notification 13/2017 CT (r) is under RCM & if A is registered & availing Services from GTA , is liable to do RCM
Thank you for valuable reply.
Pankaj sir
then rcm paid for excempted goods the sams will be in eligible for ITC
correct?
GST on Freight
The GST rate on freight services provided by a GTA are given below:

Exempt

No GST on freight charges in India is applicable for the following:

Transport of agricultural produce

Transport of milk, salt, food grains including rice, flour, pulses

Transport of organic manure

Transport of newspapers or magazines registered with the Registrar of Newspapers

Transport of relief materials for victims of natural or man-made disasters, calamities, accidents or mishaps

Transport of defence or military equipment

Transport of any goods, where the gross amount charged for transportation for a consignment transported in a single carriage is less than Rs. 1,500

Rated at 5%

For transportation of goods other than the above, GST on freight charges at 5% is levied.
Dear Pritesh

Yes.......
If Transport service is from individual vehicle owner than no RCM MEANS NO CONSIGNMENT NOTE= NO RCM GST

we purchase the dal (exempted gods) but rcm not paid the exempted goods then  we reported in gstr 9c that rcm not paid on freight on exempted goods  

Sorry for above Reply As per Entry no.22. Of Notification , 9/2017 IGST (R) , it's Exempted & No RCM is applicable. Recepient is not required to do RCM .


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