GTA - RCM - IGST or CGST

[Ethirajan Parthasarathy]

A dealer in Karnataka buys Goods from Maharastra. The transporter in Maharastra has charged freight of 10000 for moving goods from Maharastra to Karnataka. Is dealer in Karnataka liable to pay CGST and SGST or IGST on freigh charges of 10000 under RCM

AI Summary

IGST Applied on Freight for Inter-State Goods Transport from Maharashtra to Karnataka Under Reverse Charge Mechanism A dealer in Karnataka purchases goods from Maharashtra, with a Maharashtra transporter charging a freight of 10,000 for delivery. The dealer queries whether they must pay CGST and SGST or IGST on the freight under the reverse charge mechanism (RCM). Respondents clarify that since the supplier and recipient are in different states, IGST applies. If both parties were in Karnataka, CGST and SGST would be applicable instead. The discussion highlights the distinction between inter-state and intra-state transactions under GST regulations.