Question ID :
44652
RCM
one of my client manufacturing Rice which is exempted goods however its by product '"Bran" is taxable at 5% ,while purchasing some capital goods it has to pay freight to GTA,will RCM be applicable.
Posted by
CA. SHARMA RAJESH CHANDRA
on
May 20, 2024
Filed Under
GST
If registered under GST then RCM applicable
Posted by
VINAY BHARGAV KUMAR G on
May 20, 2024
Answer ID :
85427
If your client is unregistered under GST, then the Goods Transport Agency Services received from the transporter would be exempt vide Sl. No 21A of the exemption notification 12/2017-CT (R) amended from time to time. In such a scenario payment of taxes under reverse charge will not arise.
If your client is registered under GST, then the GTA Services received for which freight paid would become taxable under GST. If the transporter is also registered and has opted to pay tax under forward charge by filing Annexure-V,then payment of taxes under RCM will not arise. If your transporter is a GTA and is unregistered, then you shall pay tax under RCM. If the GTA has not filed Annexure V, then your client shall pay tax under RCM.
However, if the services received are in the nature of Goods Transport Operator [GTO], then the same are exempt under GST.
Posted by
SREENIVASULU THULASIRAM on
May 20, 2024