RCM Liability on Freight charges

[Manjunath S]

Dear Sir,

We used to send Auto/Tempo to pickup Materials from Transporters like Mahalingesh, Patel Roadways, TCI, VRL Etc. Driver will pickup the material and deliver to us, so that we will pay his freight ₹ 1000/- per day.

Our Quiry is,

Will this freight charges attract RCM Liability ? No Invoice will be provided by him.

Kindly guide.

Manjunath S

AI Summary

Reverse charge on transport services depends on GTA classification and consignment note status, affecting receiver's self invoice obligation.
Reverse charge liability on freight depends on whether the transport service is that of a Goods Transport Agency; the receiver must self invoice and pay tax where GTA services are taxable. Issuance of a consignment note (or equivalent lorry receipt/bilti) indicates GTA status and attracts GST under reverse charge, while absence of a consignment note has been argued to render individual transporter services exempt under the road transportation notification. Conflicting judicial and advance ruling authorities mean assessment must consider consignment documentation, transporter classification, and applicable notifications.