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RCM requirements

AJAY KUMAR (accountant) (213 Points)

28 January 2020

sir,
if what is the limit of freight bill to deduct a reverse charge
and it's both transport applied if he has not optain gst number or obtain gst number

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3 Replies

Anup Agarwal (1184 Points)
Replied 28 January 2020

If consignment amount is more than Rs. 750/- it is mandatory to pay GST under RCM.

RCM shall be applicable to every registered person.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 January 2020

Notification no 12/2017 CTR gives exemption for service provided by GTA, by way of transport in goods carriage of 1. goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exbceed 1500/-
2. goods, where consideration charged for transportation of all such goods for a single consignee does not exceed 750/-

As per Notification 5/2017
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 CGST Act such person is
exempted from obtaining registration under the aforesaid Act.

So GTA is not required to obtain Registration until he is providing services to Receptient who is liable to do RCM

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 29 January 2020

Yes... I agree to Mr Pankaj Rawat Ji...

Rcm exemption limit is prescribed as single consignment then the limit Rs 1500/- & Other one Rs 750/- for single consignee of all goods...

Note : rcm applicable for GTA services...
Non-GTA is also a transporter. Better to check out rcm condition not applicable to "transportation of goods by road" (Non-GTA).