Is RCM applicable on freight under GST?
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Is RCM applicable on freight under GST?
All provisions of the GST Act will apply to a registered person. Anand is liable to pay GST under RCM….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Transporting goods (GST paid by GTA)* | 5\% No ITC or 12\% with ITC |
Is RCM applicable on transport of exempted goods?
Please clarify whether a GTA providing service in relation to transportation of goods by road under reverse charge mechanism (RCM) can avail of the benefit of this exemption. Answer: Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.
Under which case reverse charge mechanism RCM will not be applicable?
In case of an unregistered person is selling goods or providing any services to the registered person, then the liability to pay tax shifts on the registered person i.e. the recipient of goods/services, where such supply is of taxable supplies. No reverse charge mechanism in case of exempted supplies.
Is freight exempt from GST?
GST must be charged on the cumulative value of supply. If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment. However, transportation of certain essential items are exempted under GST.
What is freight RCM?
Thus, a consignment note is an essential condition to be considered as a GTA. Applicability of Reverse Charge Mechanism (RCM) on GTA Services. We know that GST is application of freight paid for the transportation of goods on reverse charge basis.
Is RCM applicable on ocean freight?
The CGST Act requires the importers to pay IGST at 5\% on ocean freight under the Reverse Charge Mechanism (RCM). Section 5(3) of the IGST Act: This section notifies the supplies which are taxable to GST under the reverse charge mechanism.
On which goods RCM is applicable?
List of Goods under RCM in GST
| Sr. No. | Description of supply of Goods | Supplier of Goods |
|---|---|---|
| 1 | Cashew nuts (not shelled or peeled) | Agriculturist |
| 2 | Bidi Wrapper Leaves (tendu), Tobacco Leaves | Agriculturist |
| 3 | Silk Yarn | Manufacturer of silk yarn from raw silk or silk worm cocoons |
| 4 | Lottery | State Government, Union Territory or local authority |
On which expenses RCM is applicable?
What are the Profit & Loss items which might attract GST under RCM
- Rent.
- Commission payments.
- Printing and stationery.
- Repairs and Maintenance.
- Office Maintenance.
- Vehicle maintenance.
- Computer maintenance.
- Legal Fees.
Is GST payable on freight?
This means that the transport and handling of goods (including issuing and processing documentation) at or up to the terminal gate at the port or airport of discharge, made by the supplier under the contract for international carriage, will be GST-free as these services are made at, or prior to, the place of …
Is RCM applicable on brokerage?
But, in some cases, a recipient of goods/services is required to pay GST called a reverse charge mechanism. Services provided by a broker or a commission agent to the following individuals are covered under reverse charge mechanism: Bank. Financial institution.