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Please guide us gst rcm applicability on transportation on supply made to merchant exporter

indra karnakar (officer-commercial) (26 Points)

08 September 2018

We have supplied material to a Merchant exporter. Whether we have to pay GST under RCM on transportation.

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2 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

If transporter raises the bill in your name and not charging GST in the invoice. And transporter is GTA & charges >Rs. 750/1500 then you need to pay RCM on the same

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 September 2018

As per Notification 9/2017 IGST (r)
GTA services are exempted only when:
(a) agricultural produce;
(b) goods, where consideration charged
for the transportation of goods on a
consignment transported in a single
carriage does not exceed one thousand
five hundred rupees;
(c) goods, where consideration charged
for transportation of all such goods for a
single consignee does not exceed rupees
seven hundred and fifty;
(d) milk, salt and food grain including
flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered
with the Registrar of Newspapers;
(g) relief materials meant for victims of
natural or man-made disasters, calamities,
accidents or mishap; or
(h) defence or military equipments.

Hence in your case RCM is applicable if the bill is in your name & you are paying, else the recepient