RCM on tax free goods transportation exp

[Piyush Doshi]

If a supplier is dealing in tax free goods,is he still liable to pay gst under RCM on transportation of goods?

[KASTURI SETHI]

Yes Except the goods specifically exempted vide Notification No.12/2017-CT(Rate) dated 28.6.17 as amended (at serial no.21 & 22).

[Ganeshan Kalyani]

The taxability of a product has nothing to do with the taxability of a service. The product is exempt in your case but the service of Goods transport agency service is taxable .

The exemption is available on the transportation of the products which are enumerated in the exemption notification as mentioned in Sri Kasturi Sir 's reply.

AI Summary

Suppliers of tax-free goods may owe GST on transport services under RCM, with exceptions in Notification No. 12/2017-CT(Rate). A discussion on a forum addressed whether a supplier dealing in tax-free goods is liable to pay GST under the reverse charge mechanism (RCM) for transportation services. It was clarified that, generally, GST is applicable on transportation services, even if the goods themselves are tax-exempt. However, exceptions exist as outlined in Notification No. 12/2017-CT(Rate), which exempts certain goods from GST on transportation. The taxability of goods does not affect the taxability of services, and exemptions apply only to specific goods listed in the notification.