RCM on freight paid to individual transporter whose amount is less than 5000 a day?

[RameshBabu Kari]

RCM on freight paid to individual transporter whose amount is less than 5000 a day?

[Himansu Sekhar]

Yes gst is applicable even if the value is less than 5000 as the RCM is under sec 9(3). The 5000 scheme is foir sec 9(4).

[RAMESH PRAJAPATI]

I am agree with view of the expert but there is one another angle of this transaction also.

Sr. 18 of Notification No 12/2017-CT (Rate) exempts Services (HSN -9965) i.e. by way of transportation of goods by road except the services of a goods transportation agency and a courier agency. It means if the transportation service is not provided by GTA, then not taxable (goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called). So no need to pay GST on RCM basis for the services provided by individual vehicle owner who is not a GTA.

AI Summary

Debate on GST applicability under Section 9(3) for freight under 5000/day; exemption noted via Notification No. 12/2017-CT. A discussion on the applicability of the Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for freight paid to individual transporters with amounts less than 5000 per day. One participant asserts that GST is applicable under Section 9(3), while another agrees but highlights an exemption under Notification No. 12/2017-CT (Rate). This exemption pertains to services by individual transporters who do not issue consignment notes, meaning GST is not required if the service is not provided by a Goods Transport Agency (GTA).