TaxTMI 
TaxTMI 
Dear sir i have one doubt regarding RCM on frieght.as per Gst notification no.12/2017 -central tax(rate) dated 28/6/2017 (sr.no 18) transporters has two options to pay GST 5%with out input.12% with input.and it further shows that if transporter chooses 12% as per notification the specified supplier need not pay gst on RCM.it means if he chooses 5% then supplier is also required to pay under RCM.please send me reply
Rcm on freight
23 Feb 2018 
11 Replies 
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Reverse charge on freight: recipient pays only when transporter does not charge GST; charging GST on invoice removes reverse charge duty.
Reverse charge on goods transport services depends on whether the transporter charges GST and which tax option the transporter elects: if the GTA charges GST on the invoice (either lower non ITC option or higher ITC option), the recipient need not pay under reverse charge; if the transporter does not charge GST on the invoice, the recipient is liable to pay GST under reverse charge. Recipients may claim input tax credit for GTA services where they qualify, and should seek a declaration from the transporter about claiming input credits when reverse charge is paid. (AI Summary)
Reverse charge on goods transport services depends on whether the transporter charges GST and which tax option the transporter elects: if the GTA charges GST on the invoice (either lower non ITC option or higher ITC option), the recipient need not pay under reverse charge; if the transporter does not charge GST on the invoice, the recipient is liable to pay GST under reverse charge. Recipients may claim input tax credit for GTA services where they qualify, and should seek a declaration from the transporter about claiming input credits when reverse charge is paid. (AI Summary)