Hello Sir, Mr X is purchasing Goods from Mr. A which is Shipped to Mr. Z. Mr X pays the Freight.The sale price Quoted to Mr. Z is inclusive of freight.
My Query is that
is Mr X liable to Pay RCM on Freight (Although he is Paying GST on Sale which is Inclusive of freight)
Clarification: Mr. X Liable for GST under Reverse Charge on Freight; Can Claim Input Credit for Freight Services In a discussion about the Goods and Services Tax (GST) on freight, a query was raised regarding whether Mr. X, who pays freight charges while purchasing goods from Mr. A and selling to Mr. Z, is liable to pay GST under reverse charge mechanism (RCM) on freight. Respondents clarified that there are two separate transactions involved. Mr. X must pay GST under RCM for the freight services received and can claim it as input credit. When Mr. X charges Mr. Z, the GST applies to the total sale value, including freight, based on the goods' HSN code. (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
TaxTMI 
