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

Reverse charge on freight applies where transporter does not charge GST and exemption thresholds are exceeded, requiring recipient to pay.
Applicability of reverse charge arises when a GTA does not charge GST and the recipient is registered; RCM liability depends on whether freight charges exceed statutory exemption thresholds for single carriage or for all goods to a single consignee, with respondents indicating that amounts beyond the lower exemption require the recipient to pay GST under reverse charge.