RCM on transportation

This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on transportation services, particularly concerning Goods Transport Agency (GTA) services. It highlights that RCM is generally applicable to GTA services, with a GST rate of 5%. For non-GTA services, RCM was not applicable from July 1st, 2017. The audit found significant tempo rent expenses, prompting a review of RCM obligations for local deliveries paid via cheque where TDS was applied.