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RCM ON GTA SERVICE

01 April 2021

Consignor of Goods Located at Mumbai Consignee In Ludhiana.. Transporter supplying goods located at mumbai. Freight is to be paid consignee located at ludhiana.. in such case consignee will do self invoicing under gst whether he will charge IGST or CGST&SGST?/

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 01 April 2021

Place of supply (for transportation of goods by road) will be the location of recipient of service.

However, since the consignee is liable to pay freight charges, place of supply, will be the location of the consignee (if registered). Hence, in this case, supply of service has been made from Mumbai to Ludhiana and hence IGST to be paid by the consignee on RCM basis, if the transporter is a GTA.