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RCM will be applicable or not

Bittu (Accountant) (44 Points)

29 May 2019

our turnover is under one crore.
are we liable to pay RCM on freight or expenses

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4 Replies

Danish Mahajan (16 Points)
Replied 29 May 2019

Rcm on freight is compulsory

Bittu (Accountant) (44 Points)
Replied 29 May 2019

for everyone

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 29 May 2019

Yes RCM compulsory if transporter is GTA and he doesn't charge GST on his invoice.
There are certain exemption on the above service. You can refer the exemption notification for the same

Nandini H Gupta (Chartered Accountant ) (369 Points)
Replied 29 May 2019

RCM is applicable for services of transportation of goods by road by a GTA (i.e Who issues a consignment note).

and RCM levy is made under Section 9(3) of CGST i.e The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

If above is the services then GST under RCM is payable.