RCM on freight paid for Rice Kani

[KARAN VERMA]

Sir

I have purchase rice kani which is exempted item. Whether I am required to pay reverse charge tax on freight paid to GTA for purchase of rice kani.

AI Summary

Reverse Charge Mechanism Not Applicable for Freight on Exempted Rice Kani under GST Notification No. 12/2017. A participant inquired about the applicability of reverse charge mechanism (RCM) on freight paid for purchasing rice kani, an exempted item under GST. Two responses were provided. The first response clarified that rice kani is considered broken rice and is exempt from GST under Notification No. 12/2017, allowing exemption from GST on Goods Transport Agency (GTA) services. The second response confirmed that RCM is not applicable for this transaction. Both responses emphasized that these interpretations should not be taken as professional advice.