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

Reverse charge mechanism applies to transportation services even when goods are tax-exempt, subject to listed exemptions.
Transport services remain taxable under the reverse charge mechanism even if the supplier deals in tax-exempt goods, except where the transportation of those particular goods is expressly exempted by the relevant exemption notification; the taxability of the product does not determine the taxability of the Goods Transport Agency service.