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RCM ON FREIGHT OF EXMTED GOODS

14 April 2021

Sir I am REGISTERED UNDER GST. I am a banana trader. When I buy bananas from a farmer, I have to pay for the transport of bananas from one place to another. Do I have to pay RCM on rent if. And I export Kelly

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4 Replies

RENU SHARMA (1388 Points)
Replied 14 April 2021

No ,rcm will be will exempt as you are banana trader are exempt as per gst

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 15 April 2021

In term of Notification 9/2017 CT (r) Services provided by a goods transport
agency, by way of transport in a goods
carriage of -
S.no.2 (a) agricultural produce;
is Exempted .

So as in light of Above No. RCM is applicable.

anil jain (Partner) (1072 Points)
Replied 15 April 2021

exemption of agricultural produce is for farmer and not for trader.

In my opinion RCM is applicable.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 April 2021

Dear Anil

As per Notification 5/2017 CT , persons who are only engaged in making
supplies of TAXABLE goods or services or both, the total tax on which is liable to
be paid on reverse charge basis by the recipient of such goods or services or
both under sub-section (3) of section 9 of the said Act as the category of persons
exempted from obtaining registration under the aforesaid Act.

in context to above notification when there is Taxable supply then only Recepient is liable to do RCM & in term of Notification 9/2017 CT (r) the transportation services by GTA in case of transportation of agriculture products is Exempted. So when the services is Exempted then the question of RCM applicability does not arises.