RCM ON TRANSPORTATION CHRGS

A trader supplying goods interstate, including delivery costs, is seeking clarification on how to declare freight charges paid to lorry owners in their GST returns. The discussion clarifies that GST under Reverse Charge Mechanism (RCM) applies only if the transporter is a Goods Transport Agency (GTA) and issues a consignment note. If no consignment note is received, the service is exempt and should be declared accordingly. Exempt supplies are to be reported in the relevant table of the GST return, even if the supplier is unregistered.