GST on Freight

[varsha jain]

Hello Sir,

Mr.A is a Cloth Merchant. He placed Order to Mr. B. Mr.B issued 3 Invoice for three Parcel on same day. Accordingly transporter issued three Bilty of RS.300/- each for the three Parcel .my Query is

Is Mr A liable to pay RCM u/s 9(3) or not

[Atul Rathod]

Yes as its in excess of exemption limit of ₹ 750/-

[Ganeshan Kalyani]

If Mr. A is registered under GST and the GTA is not charging GST on invoice then you have to pay GST@5%.

[varsha jain]

Pls explain the Following:

GST is exempt in both cases-

1) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;.

2) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty.

AI Summary

Liability of Cloth Merchant Mr. A for GST Reverse Charge Mechanism under Section 9(3) Due to Exceeded Exemption Limits A cloth merchant, referred to as Mr. A, placed an order with Mr. B, who issued three invoices for parcels transported at a cost of 300 each. The query is whether Mr. A is liable to pay Reverse Charge Mechanism (RCM) under section 9(3) of GST. One response indicates liability due to exceeding the 750 exemption limit. Another states that if Mr. A is GST registered and the transporter doesn't charge GST, Mr. A must pay GST at 5%. Exemptions include transport costs under 1,500 per consignment or 750 per consignee.