TaxTMI 
TaxTMI 
what is the rate of tax to be adopted by recipient on freight under RCM. clarification is requested.
gst on freight under RCM
18 Jul 2020 
5 Replies 
1419 Views Asked by
Concessional GST rate for freight under reverse charge hinges on whether supplier claimed input tax credit.
The enquiry concerns whether freight received under the reverse charge mechanism qualifies for a notification-based concessional GST rate for GTA services, which is conditional on the supplier having availed input tax credit on goods and services used to supply the service, and asks how a recipient can verify the supplier's credit status and whether that verification affects the recipient's entitlement to the concessional rate. (AI Summary)
The enquiry concerns whether freight received under the reverse charge mechanism qualifies for a notification-based concessional GST rate for GTA services, which is conditional on the supplier having availed input tax credit on goods and services used to supply the service, and asks how a recipient can verify the supplier's credit status and whether that verification affects the recipient's entitlement to the concessional rate. (AI Summary)