RCM on Transportation charges paid of EXEMPT goods where no consignment note issued by Transporter

[ashok dalmia]

My client is trading in EXEMPT goods. The transportation charges are paid to TRANSPORTER directly and many a times to the GTA who is arranging the Trucks. But in all cases the TRANSPORT vehicle papers copy, PAN details of owner of truck, drivers driving licence . and declaration from owner of less than 10 trucks, is supplied to us by the GTA / transporter.

Would like to know, the Status of RCM paid on supply of those EXEMPT goods.??

whether leviable though no consignment note is given by GTA or TRANSPORTER and payment directly credited in either the GTA bank account for onward payment to transporter or else directly in the Truck owner account....

AI Summary

Reverse charge on transportation services depends on who bears the freight and transporter status under GST.
Applicability of reverse charge on road transportation charges turns on who actually bears the freight and whether transport is supplied directly by the vehicle owner or through a Goods Transport Agency. Specific exemptions may apply where the vehicle owner provides transport; where a GTA intermediates, GST may be attracted. Lack of a consignment note does not by itself fix taxability; payments made to a GTA for onward payment or directly to a truck owner require factual analysis to determine reverse charge liability and, if payable in relation to taxable goods, potential input tax credit.