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RCM ON TRANSPORT FOR OUTDOOR CATERING BUSINESS

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Sridevi U S

24 Points Posted on 16 February 2023

The service of the company is supplying food for various companies canteen. The company is incurring transport charges. can the company claim gst on transport by paying tax under RCM.

kindly clarify

Replies (4)

Quick Summary

This discussion clarifies whether an outdoor catering business can claim GST on transport charges by paying tax under the Reverse Charge Mechanism (RCM). It explains that RCM is applicable to transportation services provided by Goods Transport Agencies (GTAs). However, if the business is paying output GST at 5%, Input Tax Credit (ITC) will not be allowed, unless they have not opted for composition.

CA Sorav Gupta

Chartered Accountant

328 Points Posted on 16 February 2023

If you are paying the output GST @ 5% then ITC will not be allowed.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

CA Rashmi Gandhi

Chartered Accountant

44487 Points Posted on 17 February 2023

ITC will be available if you have not opt for composition.

Meet2Eat Catering

22 Points Posted on 25 April 2023

Here we look at the RCM, or reverse charge mechanism, and how it applies to transport services for mobile kitchens in India. The author describes RCM and how it may be used by catering businesses, and gives some examples. This paper may be of greater interest and relevance to individuals in the catering sector in India, but it is still a valuable read for anybody curious about the RCM system.