RCM On GTA Service

[ASHISH SHAH]

If Groundnut is a agriculture produce or not ? If Yes then should i have to pay RCM on it's transportation ?

[KASTURI SETHI]

Groundnut (without shell) is not agricultural produce. No exemption is available under Notification No.11/17-CT(Rate). See decision of AAAR, Rajasthan reported as 2019 (3) TMI 1010 - APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHAN Applicant : Sardar Mal Cold Storage & Ice Factory.

AI Summary

Agricultural produce classification: groundnut without shell not agricultural produce, transportation services excluded from exemption under reverse charge.
Groundnut without shell is classified as not being agricultural produce and is not eligible for the exemption under the relevant notification; consequently transportation services for such groundnut are not covered by the exemption and may attract reverse charge treatment.