RCM on GTA Services

[Arif Kathiria]

Sir,

Our Client is dealing in exempted product, via notification no. 2/2017 dt 28.06.2017, Raw material used in produce are agricultural commodity.

My Question is

Whether RCM is applicable on outward transportation, and also in other services ?

AI Summary

Reverse Charge Mechanism not applicable on transportation services for agricultural commodities under Notification No. 12/2017-C.T. (Rate). A query was raised regarding the applicability of Reverse Charge Mechanism (RCM) on outward transportation and other services for a client dealing in exempted products, specifically agricultural commodities. The first response clarified that under Notification No. 12/2017-C.T. (Rate) dated 28.6.2017, services provided by a goods transport agency for transporting certain goods, including agricultural produce, are subject to a 'nil' rate of tax. The second response concurred with this interpretation, affirming that RCM is not applicable in this context.