Reverse charge Mechanism

[Ravikumar Doddi]

Dear sir,

In a Rice Mill, they procure paddy in a Private Lorry, are they liable to pay RCM on freight paid on paddy which is a agricultural produce exempt from GST and is there any exemption of GST under RCM on freight charges paid to Private Lorry owners.

AI Summary

Liability on RCM for transporting exempt agricultural produce like paddy using private lorries clarified; consignment notes impact discussed. In a discussion about the Goods and Services Tax (GST) and reverse charge mechanism (RCM), a query was raised regarding the liability to pay RCM on freight for transporting paddy, an agricultural produce exempt from GST, using a private lorry. Responses indicated that GST is exempt on the transport of agricultural produce. Additionally, it was noted that private lorry owners typically do not issue consignment notes, which may impact the applicability of RCM.