LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

RCM on Freight of Soyabean

06 June 2022

Sir,
My client is involved in the trading activity of Soyabean. Pls suggest rcm on freight will be applicable on purchasing of Soyabean. Pls refer the notification also if possible...

Reply
Follow
Share

8 Replies

18E0343 V Pradhish (243 Points)
Replied 06 June 2022

Yes! freight attracts RCM.. Kindly refer section 9(3)

Rajendra Prasad (Employee Private) (1824 Points)
Replied 06 June 2022

If the material purchasing from farmer, it means if the material will treated as a agriculture produce then no GST on freight, else has to pay GST. Please refer notification No.12/2017- Central Tax rate and 13/2017-Central Tax rate along with amendments there on.

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 06 June 2022

GST is exempted on the service of Transportation of agricultural produce by GTA. No requirement to pay GST under this case on RCM.

Agricultural produce means all produce and commodities, whether processed or unprocessed of agriculture, horticulture/apiculture, sericulture, animal husbandry, fleeces (raw wool) and skin of animals, forest produce [livestock, fisheries,] etc. as are specified in the Schedule or declared by the State Government, by notification in the Official Gazette, from time to time and also includes a mixture of more than two such products

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 06 June 2022

You have to Pay RCM u/s 7(3) if amount of freight is more than >750/-

sabyasachi mukherjee (25988 Points)
Replied 07 June 2022

Greater than 750 any notification.

Rajendra Prasad (Employee Private) (1824 Points)
Replied 07 June 2022

As per Sl.No.21 of Notification No.12/2017-Central Tax Rate

1. If Transportation charges paid for single carriage exceeds Rs.1,500/-

2. If transportation charges paid for single consigner exceeds Rs.750/-

has to pay GST under RCM subject to Sl.No.1 of Notification No.13/2017- Central Tax.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 07 June 2022

Refer Notification shared by Rajendra Prasad Sir

ADITYA SINHAL (Tax consultant) (41 Points)
Replied 14 January 2023

There is no GST on the transportation of agricultural produce.

Now critical thing in this transaction is whether the "soyabean" here is covered under the definition of agricultural produce as per GST law. (refer to notification for definition)

I feel these particular goods if not mechanically cleaned, sorted, etc then shall be covered under the definition of Agri produce and shall not be subject to rcm on transportation expenses.

(Please note GST department officials are not considering such goods as Agri produce)