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RCM ON TRANSPORT FOR OUTDOOR CATERING BUSINESS

16 February 2023

The service of the company is supplying food for various companies canteen. The company is incurring transport charges. can the company claim gst on transport by paying tax under RCM.

kindly clarify

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4 Replies

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 16 February 2023

If you are paying the output GST @ 5% then ITC will not be allowed.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 February 2023

ITC will be available if you have not opt for composition.

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Meet2Eat Catering (2 Points)
Replied 25 April 2023

Here we look at the RCM, or reverse charge mechanism, and how it applies to transport services for mobile kitchens in India. The author describes RCM and how it may be used by catering businesses, and gives some examples. This paper may be of greater interest and relevance to individuals in the catering sector in India, but it is still a valuable read for anybody curious about the RCM system.