RCM ON FREIGHT

[Deepak Garg]

SIR,

I AM PURCHASING POULTRY FEED AND PAID FREIGHT. WHEATHER I AM LIABLE TO PAY GST UNDER RCM @ 5% ON PAYMENT OF FREIGHT. THE COMMODITY IS TAX FREE.

AI Summary

GST on Freight for Poultry Feed: Payable Under RCM, No ITC, Only if Paid to Goods Transport Agency An individual inquired about the applicability of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) on freight paid for purchasing poultry feed, which is tax-exempt. Responses clarified that GST is payable on the freight amount. However, since poultry feed is exempt, the input tax credit (ITC) on GST paid for freight is not eligible. It was also noted that GST under RCM applies only if the freight is paid to a Goods Transport Agency (GTA). If the transporter is not a GTA, there is no GST liability under RCM.