Regarding RCM on transport service from an individual to a company

Dear all,

If a company receives service from an individual ( unregistered) transport service and the charges is Rs. 5,000/-. Is it RCM applicable for this service?
Note: Service provider will not issue any documents like LR copy consignment note etc...


Please clarify


With advanced thanks
Pradeep Kumar
Replies (4)
Quick Summary
This discussion clarifies whether Reverse Charge Mechanism (RCM) applies when a company receives transport services from an unregistered individual for Rs. 5,000. While RCM is generally applicable to transportation services, an exception exists if the transporter is a Goods Transport Agency (GTA). However, to be considered a GTA under GST, the issuance of a consignment note (like an LR copy) is essential. If the service provider issues consignment notes to others, RCM will likely apply to your company, making you liable for tax payment and eligible for Input Tax Credit (ITC).

Yes! transportation service attracts RCM.
No..... RCM is not applicable if transporter is GTA

Refer GTA defination provided in clause (ze) of notification 12/17 CT rate .

Note : Issuance of consignment Note is essential for supplier of services to be considered as GTA . but if he has not issued the LR to you does not mean that RCM not attracts . So check if he is issuing LR to others then youbare liable to do RCM

*  read as "RCM is not if Transporter is NOT is Not GTA'

First of all, consignment note is be issued by GTA to be considered as GTA under GST ACT . 
You will have to pay tax under RCM. And can claim ITC 

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