RCM on transport charges

[Murari Agrawal]

We have received a consignment from Faridabad to Kolkata. Freight ₹ 55000 is paid by us through Net Banking to the transporter to his bank in Faridabad. We are required to pay RCM on this. Question is whether this will be IGST or otherwise. Also, do we need to generate self invoice. Thanks

[Rajagopalan Ranganathan]

Sir,

For payment of tax under RCM the receiver of the goods or services or both is treated as supplier of the goods or services or both and he has to comply with provisions of GST Act. Therefore the place of supply is location of the receiver of goods or services or both. since both the supplier and receiver are one and the same you have to pay CGST and SGST.

[DR.MARIAPPAN GOVINDARAJAN]

Only CGST and SGST are required.

[KASTURI SETHI]

Under RCM service receiver is the deemed service provider (supplier).

[KASTURI SETHI]

I support the views of both experts.

[Bhavika Chothani]

For all RCM transactions self invoice is must. Also charge CGST-SGST on the invoice

[KASTURI SETHI]

Section 31(3)(f) of CGST Act says a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both.

As per this sub-section, self invoice is to be raised only when the services or goods or both are received from an unregistered supplier.

AI Summary

Reverse charge on transport services attracts CGST and SGST; self-invoice required only when supplier is unregistered.
Reverse charge on freight treats the receiver as the deemed supplier and, per the discussion, attracts CGST and SGST because the place of supply is the receiver's location. Contributors assert a self-invoice is required for RCM transactions, but Section 31(3)(f) limits the self-invoice mandate to supplies received from unregistered suppliers.