RCM on Rapido Dunzo Porter parcel Services

Hey Rutuja! About RCM on services like Rapido, Dunzo, or Porter (parcel/delivery services):

Key points:

• Under GST, transportation of goods by courier or parcel services generally attracts GST at 5%.

• RCM (Reverse Charge Mechanism) applies when the recipient of certain services (like transportation) is liable to pay GST instead of the supplier.

Applicability of RCM on Rapido/Dunzo/Porter parcel services:

1. If the service provider (Rapido/Dunzo/Porter) is registered under GST and issues a GST invoice charging tax on the supply, then RCM does NOT apply. You will pay GST to the supplier as per the invoice.

2. If the transporter is an unregistered person and you are a registered business receiving the parcel service, then RCM applies on the freight/parcel transportation service.

3. For transportation of goods by road, RCM applies on goods transport services received from unregistered transporters by registered persons.

So in summary:

• Rapido, Dunzo, Porter are usually registered under GST and charge GST on invoices.

• Hence, RCM does not apply on services taken from them.

• You pay GST as charged by them.

If you are receiving services from unregistered transporter (not common for Rapido/Dunzo), then RCM applies.

TL;DR:
No RCM on Rapido/Dunzo/Porter if they are GST registered and invoice with GST.

In most cases there is no RCM.

• RCM on goods transport applies only where the supplier is a Goods Transport Agency, i.e. it issues a consignment note (Notf 13/2017-CT(R), Entry 1). Even then, a GTA that has opted for forward charge (Annexure V) charges GST itself.

• App-based parcel services (Porter, Rapido parcel, Dunzo): they normally act as courier or logistics operators and charge GST under forward charge on their invoice (courier, SAC 9968, at 18%).

• Sec 9(5) (e-commerce operator pays the tax) covers only passenger transport, accommodation, housekeeping and restaurant services. It does not cover goods or parcel delivery.

Practical steps:

• Check the invoice. If GST is charged, claim ITC and there is no RCM.

• If you receive a consignment note without GST from a GTA, pay 5% under RCM. No ITC is available to the GTA in that case, but you can claim the RCM tax as ITC.

• Register your GSTIN on the app's business account so the invoice carries it and appears in your GSTR-2B.