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RCM ON TRANSPORT

KUMAR SWAMY MASNA (accountant) (103 Points)

15 September 2018

is RCM applicable for transport charges of Non GST goods like diesel and petrol.
I am requesting kindly explain with sections this issue

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2 Replies

Gopal Chandu (Freelancer with intelligence agencies ) (113 Points)
Replied 15 September 2018

If Priya Sudarshan were online she would have explained with relevant sections.

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 16 September 2018

Services by way of transportation of goods are exempted:

(a) by road except the services of:

(i) a goods transportation agency;

(ii) a courier agency

(b) by inland waterways.

Therefore, the service of transportation of goods by road continue to be exempt even under the GST regime. GST is applicable only on goods transport agency,

Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust,