GST under RCM for transporting goods from UR persons

[SAFETAB LIFESCIENCE]

Dear Experts,

We are transporting goods taken delivery from city Lorry Offices/godowns to our factory and paying local freights about ₹ 300/- or ₹ 400/- by cash, to the tempo/van walas who are not registered under GST.

Whether this type of van charges are GST taxable under RCM. Is there any exemption for this based on/by under ceiling per day expenses of ₹ 5,000/- like that ???

Please note the GST on the freight for the goods transported from the suppliers place such as Maharastra, Gujarat etc. to our place but upto the transporters godown is paid.

AI Summary

Company Questions GST on Local Freight Under Reverse Charge; Experts Cite Exemptions in Notification No.12/2017-CT. A company is inquiring about the applicability of Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for local freight payments to unregistered transporters. They seek clarification on whether such charges are taxable under GST or if there is an exemption for expenses under 5,000 per day. Experts in the forum reference Notification No.12/2017-CT, indicating exemptions for transportation charges below 1,500 for single consignments and 750 for multiple consignments. The consensus among the experts is that GST is not applicable in this scenario.