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RCM on Sale?

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Meet Parekh

76 Points Posted on 27 February 2020

if we sale to any our party or goods sent through transportation

in case of purchase we paid rcm 5% but in sales case what we should treatment of this

sales transportation expenses???

Replies (6)

Quick Summary

This discussion clarifies the Reverse Charge Mechanism (RCM) concerning transportation expenses when selling goods. The key point is that the party availing the GTA service is liable to pay RCM, provided certain conditions are met. If you pay the freight, you're liable; if your client pays, the liability falls on them. Inward supplies under RCM are not reported in GSTR-1, which is for outward supplies.

Anshuman Basu

account -GST

1560 Points Posted on 27 February 2020

I think you are traders and received transpotation services from GTA. in such case when you pay freight to GTA then RCM liability fall on you. but when u send your matarials to your client 1st think we should know who will paid freight charges to GTA. if u paid then u r liable to pay tax as RCM but if you client will paid freight to liability fall on him RCM basis