is RCM payable on GTA service if freight charges including in Invoice and tax charge on the rate which applicable on original item i.e. 18% and same amount paid to GTA

[Gaurav Goyal]

Dear Sir/Madam,

We charged freight charges on invoice and calculate GST on same rate as applicable on goods. But same amount of freight paid to GTA. Is GST to be paid on RCM also.?

Example:

Value of Goods 90000/-

Freight charges 10000/-

Taxable value 100000/-

GST@18% 18000/-

Total Invoice value 118000

Now we paid 10000 to GTA and my Freight account shown in Profit and loss account as 0/-(10000 Dr-10000 Cr).

Is RCM applicable on payment to GTA of 10000/-

Thanking you

AI Summary

Reverse charge on GTA services requires recipients to pay GST on transport services even when freight is invoiced to the customer.
Where freight is invoiced to the customer, the supplier charges GST at the rate applicable to the goods. Separately, if transportation is provided by a Goods Transport Agency, the recipient must pay GST under the reverse charge mechanism on the GTA service. If the transporter is an individual truck owner and not a GTA, the service may be exempt from RCM. Any excess tax collected on the outward invoice can be claimed as a refund and RCM payments may require cash payment.