RCM on freight Expnses

[Guest]

We have to pay GST on reverse basis on freight paid to transporter so my query is what is the rate of Reverse Charge ? Is credit available to the service recipient on tax paid?

[KASTURI SETHI]

GST@ 5%. First pay deposit in cash and then take credit on the strength of challan.

[Himansu Sekhar]

Correct view sir

[usha sharma]

Sir, Can we avail Input credit of GST paid through RCM on Transportation or fright?

[KASTURI SETHI]

Yes. You can but also read latest changes in your interest.

AI Summary

Reverse charge on freight: recipient must deposit tax in cash then claim input tax credit on challan. Freight paid under the reverse charge attracts GST which the service recipient must first deposit in cash and obtain a challan; the recipient may then claim Input Tax Credit of the tax paid under reverse charge on the strength of that challan, subject to applicable compliance and later amendments.