TaxTMI 
TaxTMI 
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.
RCM ON FREIGHT
19 Apr 2018 
7 Replies 
4741 Views Asked by
Reverse charge on freight applies when paid to a Goods Transport Agency, affecting ITC entitlement for exempt supplies.
GST on freight is payable under the Reverse Charge Mechanism when freight is paid to a Goods Transport Agency; RCM does not apply if the transporter is not a GTA. Input tax credit for GST paid on freight is admissible only when the recipient's outward supplies are taxable; where the final goods are exempt (e.g., poultry feed under HSN classification), ITC on freight/GTA services is not available. (AI Summary)
GST on freight is payable under the Reverse Charge Mechanism when freight is paid to a Goods Transport Agency; RCM does not apply if the transporter is not a GTA. Input tax credit for GST paid on freight is admissible only when the recipient's outward supplies are taxable; where the final goods are exempt (e.g., poultry feed under HSN classification), ITC on freight/GTA services is not available. (AI Summary)