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Issue ID: 114864
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RCM on tax free goods transportation exp

Date 15 Apr 2019
Replies2 Replies
Views 2977 Views
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. (AI Summary)

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

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