gst on freight under RCM

[Kavali Ramanjeneyulu]

what is the rate of tax to be adopted by recipient on freight under RCM. clarification is requested.

AI Summary

Clarification Needed on GST Rate for Freight Under Reverse Charge Mechanism: 5% or 18%? A discussion on a forum regarding the Goods and Services Tax (GST) on freight under the Reverse Charge Mechanism (RCM) seeks clarification on the applicable tax rate. The initial query asks for the tax rate to be adopted by the recipient on freight under RCM. The discussion highlights a taxpayer paying 5% GST on freight as per specific notifications, contingent on whether the supplier has claimed input tax credit. The question arises whether the recipient can continue with the 5% rate or must pay 18% if the supplier has claimed such credit. Multiple replies request further elaboration on the query.