For example, Company A who is register, purchase wheat (exempted goods) from Company B inter- state through GTA.
Now my question is Company A need to pay the rcm on freight or not? Is rcm on freight applicable against the purchase of exempted goods?
8 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 February 2019
Goods are exempted for that the supplier B has not charged any GST on Invoice ,... but GTA services as per Notification 13/2017 CT (r) is under RCM & if A is registered & availing Services from GTA , is liable to do RCM
pritesh
(CA Final student)
(7101 Points)
Replied 23 February 2019
Pankaj sir
then rcm paid for excempted goods the sams will be in eligible for ITC
correct?
then rcm paid for excempted goods the sams will be in eligible for ITC
correct?
Subrata Hazarika
(19 Points)
Replied 23 February 2019
GST on Freight
The GST rate on freight services provided by a GTA are given below:
Exempt
No GST on freight charges in India is applicable for the following:
Transport of agricultural produce
Transport of milk, salt, food grains including rice, flour, pulses
Transport of organic manure
Transport of newspapers or magazines registered with the Registrar of Newspapers
Transport of relief materials for victims of natural or man-made disasters, calamities, accidents or mishaps
Transport of defence or military equipment
Transport of any goods, where the gross amount charged for transportation for a consignment transported in a single carriage is less than Rs. 1,500
Rated at 5%
For transportation of goods other than the above, GST on freight charges at 5% is levied.
The GST rate on freight services provided by a GTA are given below:
Exempt
No GST on freight charges in India is applicable for the following:
Transport of agricultural produce
Transport of milk, salt, food grains including rice, flour, pulses
Transport of organic manure
Transport of newspapers or magazines registered with the Registrar of Newspapers
Transport of relief materials for victims of natural or man-made disasters, calamities, accidents or mishaps
Transport of defence or military equipment
Transport of any goods, where the gross amount charged for transportation for a consignment transported in a single carriage is less than Rs. 1,500
Rated at 5%
For transportation of goods other than the above, GST on freight charges at 5% is levied.
CA. SANJAY KR. GARG
(CA IN PRACTICE)
(27 Points)
Replied 13 June 2019
If Transport service is from individual vehicle owner than no RCM
MEANS
NO CONSIGNMENT NOTE= NO RCM GST
atul kapoor
(chartered accountants)
(22 Points)
Replied 07 September 2019
we purchase the dal (exempted gods) but rcm not paid the exempted goods then we reported in gstr 9c that rcm not paid on freight on exempted goods
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 September 2019
Sorry for above Reply As per Entry no.22. Of Notification , 9/2017 IGST (R) , it's Exempted & No RCM is applicable. Recepient is not required to do RCM .
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