Reverse Charge on Transport

[Rohit Bhura]

In case of Transport the Gst is payable by Consignee under reverse Charge. Would the Consignee deduct the GST amount while making the payment or it will paidby his own pocket.

Eg.

If a Transport has issued me a Consignment Note for a freight of 50,000 then should i pay him 50,000 and pay 2500 GST on my own or should i pay him 47500 and deposit remaining 2500 to government.

AI Summary

Reverse charge on transport: receiver must pay GST under RCM and generally cannot claim input tax credit.
Reverse charge on goods transport services places the entire GST liability on the service recipient under RCM; the receiver must pay GST separately and cannot treat freight as tax-inclusive. Contract terms may determine who bears the economic cost, but they do not change statutory RCM liability. Input tax credit for GST paid under RCM on GTA services is generally barred where the schedule expressly disallows ITC; non-statutory guidance cannot override the statutory list.