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Deepshikha Sharma (Tax Manager)     02 March 2021

Whether RCM applicable on JCB Loading Unloading Charges

We hire JCB Machine in the company for loading unloading of material in factory premises, is that covered under RCM. Or shall we consider it in the nature of rent of machinery hired.

 2 Replies

Spurto Consultancy Services

Spurto Consultancy Services (Consultant)     02 March 2021

In our opinion it must be considered as Plant & Machinery and not eligible under RCM. 

1 Like

swati (FINANCE OFFICER)     02 March 2021

The expenses should be treated as Rent on Machinery, as its purely hiring of JCB machine at your company. So the vendor who is providing this service will not come under RCM.

But in case

1. same vendor is providing labour along with that for loading unloading then it will be treated as of GTA services.

2. If invoice is raised inclusive of these hamali charges, GST will be paid @ 5% under RCM.

3.If charged separately, it will fall under manpower supply and RCM will not be applicable. Under FCM, rate will be 18%.

Section 9(3) of CGST Act read with Notification No.13/17-CT(R) dated 28.6.17 is applicable for the purpose of RCM.

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