rcm for onion transport

[giri gattupalli]

respected sir,

one of my clint is a gst registered regular dealer dealing in onions which are gst exempted goods.he purchases onions (whin in state) and pay transport charge to lorry about amounting to rs 30,000 thousands and above.whether he is liable to pay gst in reverse change mechanism if yes at which rate. please discuss with considering that onions are exempted goods under gst .

thanking you

[KASTURI SETHI]

Whether onion is dehydrated or not ? Pl. clarify.

[giri gattupalli]

namaste sir. not dried or not subjected to any type of processing. purchaged straight from agricultural market. and please suggest about freight expenses paid to transport of aqua feed (prawn feed which is exempted under gst ) also .

thanking you

[KASTURI SETHI]

Onion (unprocessed) is an agriculture produce. Transportation of agriculture produce by road is exempted from GST vide Notification No.12/17-CT(R) as amended.(Serial No.21). Pl note that GTA services are taxable even if exempted goods are transported subject to certain conditions/factors.

Aqua/Prawn feed is another issue. Pl.elaborate how it is linked to onion.

[giri gattupalli]

respected sir,

thanks for your kind information. please clarify whether exemption for payment of gst under rcm available only for agricultural produce or for all exempted goods like aqua feed etc .please discuss

thanking you

[KASTURI SETHI]

Specific exemption for GTA service is available. For example milk, vegetable, pulses, food grain flour, organic manure, Defence equipment etc.

If goods are exempted from GST, that will not be the criteria for availing exemption from GST for providing GTA Services.

In order to clarify further, No exemption from GST for GTA service ia available to aqua feed (though exempted goods)

[giri gattupalli]

thank you sir. doubt cleared.

[Bharat Cholleti]

Thank you kasturi sir

AI Summary

GTA services exemption: transport of unprocessed agricultural produce by road is exempt, but exempt goods are not automatically covered. Transportation of unprocessed agricultural produce by road is specifically exempt from GST, and the GTA-specific exemption applies to listed agricultural items such as onions; mere exemption of the goods does not automatically exempt GTA services, so exempt goods not listed (for example aqua feed) are not covered by that GTA exemption.