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.

[Amit Agrawal]

It is my understanding that 'rice kani' is nothing but broken rice, which is still known & used as 'rice' (i.e. food grain) in common parlance.

And if so, exemption from GST against GTA services can be claimed under Serial no. 21 (d) of Notification No. 12/2017- Central Tax (Rate) as amended till date.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Ganeshan Kalyani]

It is exempt. RCM is not applicable.

AI Summary

Reverse charge on freight exempt when transported goods are exempt rice kani; RCM not applicable. Freight paid to a Goods Transport Agency for carriage of rice kani (broken rice), treated as an exempt foodgrain, is covered by the exemption entry for GTA services and therefore does not attract GST under the Reverse Charge Mechanism; the advice is an ex facie, non binding view.