RCM on Transport Agency

If Party Supplies & Manufacturing Only Exempt Goods (Non Brand Chana Dal & By Products).
In case of Dispatched Goods on Transportation one Transport Agency's bill shows in GSTR 2A. on the time of Filing 3b that much amount showing in RCM head of Outward supplies.
HOW TO FILE 3B If my Party Has no Tax Liability (Only Exempt Supplies) ? What To Do ?
Anyone Please Help.
Replies (5)
Quick Summary
This discussion addresses how to handle Reverse Charge Mechanism (RCM) on transportation agency bills when a business deals exclusively in exempt goods, such as non-branded chana dal. It clarifies that RCM is generally applicable to transportation charges unless the goods qualify as agricultural produce. The advice suggests paying the RCM and then claiming the Input Tax Credit (ITC) in GSTR-3B, even if the outward supplies have no tax liability.

You have to pay RCM on transportation. You must have declared exempt sales in GSTR-1 which will get automatically reflected in GSTR-3B.

GSTR 3b me Reserve Charge ke head me amount aa raha hai if I pay RCM then how to use my GST ITC amount ? Client Exempt Supply karta hai

You have to RCM on the transportation bill if taxable. 

Further, claim the ITC of the RCM paid in your GSTR 3B. 

However, in my opinion, no RCM is payable on transportation charges paid to GTA for transport of agricultural produce 

 

Mam, 3b me jo outward supply head me RCM amount aa rahi toh usko zero karke Return submit kare ?
Dear Rajesh Jain
phaley toh aap yeh jo Channa Dal chaiyey Non branded hai lekin kya yha Aggriculure Product ki defination main aata bhi hai ki nahi ....
agricultural produce” has been defined vide 12/2017-C.T. (Rate),
agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.

In context to above definition , the Daal is generally polished for marketable , hence it get out of definition of Aggriculure Product.

So if out of Aggriculure produce , the RCM attract. Else if it's really under Aggriculure Produce then ask your GTA to that it's exempted supply and report the same in table 8 of GSTR 1 .

But since it's being autopopulated in your 2B you need to do RCM & deposit the same in cash.

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