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.

[Ganeshan Kalyani]

in my view gst is exempt on transport of agriculture produce.

[KASTURI SETHI]

There is no doubt.

[YAGAY and SUN]

In addition to the above replies privat lorry owners do not issue Consignment notes.

AI Summary

Reverse charge mechanism: freight for exempt agricultural produce not subject to RCM; private lorry consignment notes absent.
Transport of agricultural produce is exempt from GST, so freight for paddy is treated as not subject to GST and therefore not liable under the reverse charge mechanism; private lorry owners typically do not issue consignment notes.