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Demurrage charges under RCM

01 December 2018

GTA has raised an invoice towards demurrage or delay in collection charges to his customer, whether RCM applicable in this case or not? If So, what is the rate of GST under RCM?

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3 Replies

SANOJ KUMAR (9 Points)
Replied 01 December 2018

if GTA raised separate invoice for demurrage charges then what is the applicability of GST under RCM and what would be rate of GST?

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Uday Rathi (133 Points)
Replied 02 December 2018

RCM would be applicable at the rate of 5% in case the transporter does not want to avail ITC

Also it shoud be noticed that if the transporter wants to avail ITC - 12% in this case there would be forward charge i.e transporter is liable to pay GST.