TaxTMI 
TaxTMI 
My clients Spinning Mills are paying Lorry Freight payment for purchase of Cotton - Inter State. Please clarify whether RCM is applicable under GTA for the above Lorry Freight Payment?
RCM applicability on Cotton Freight
13 Mar 2019 
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Reverse charge on freight: recipient liable for GST where cotton is supplied by traders/ginners or transporter issues consignment note.
RCM on interstate lorry freight for cotton depends on seller status and transport documentation: freight attracts reverse charge where the consignment involves cotton supplied by non-agriculturists (ginners/traders) or where a consignment note is issued by the transporter. Raw cotton that retains agricultural-produce character and only customary processing by the cultivator may be exempt, but cotton processed by ginners is not agricultural produce and the registered recipient bearing freight is liable to pay GST under RCM. (AI Summary)
RCM on interstate lorry freight for cotton depends on seller status and transport documentation: freight attracts reverse charge where the consignment involves cotton supplied by non-agriculturists (ginners/traders) or where a consignment note is issued by the transporter. Raw cotton that retains agricultural-produce character and only customary processing by the cultivator may be exempt, but cotton processed by ginners is not agricultural produce and the registered recipient bearing freight is liable to pay GST under RCM. (AI Summary)