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RCM ON FRIGHT

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ajay devgan

58 Points Posted on 25 August 2020

Sir fright per RCM KITNA JAMA HOGA WITH ITC PR

Replies (3)

Quick Summary

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on freight charges, particularly when dealing with Goods Transport Agencies (GTAs). RCM at 5% is applicable if the GTA does not charge GST on their bill and a consignment note is issued. If the GTA charges 12% GST or the service is from a non-GTA transporter, RCM is not applicable. Input Tax Credit (ITC) can be claimed on the RCM paid.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 25 August 2020

If Freight Paid to GTA who is not charging GST 12% on bill, Than RCM is applicable in that case @ 5%

If GST already charged by GTA on freight @ 12% or service received from other than GTA than No RCM liability.

Raj Chaurasia

195 Points Posted on 25 August 2020

Rcm is applicable in case transportation services received by GTA through Road. So if consignment note has been issued by transporter & ur transporter in not paying gst under forward charge then u need to pay under rcm @ 5percent of freight paid. u can take credit of same in gstr 3b

Taha

257 Points Posted on 26 August 2020

Depends upon gta if gta avails 12% scheme then itc available +Fcm if if avails 5%scheme then rcm and u will get itc no compliance on gta regarding same