TaxTMI 
TaxTMI 
Dear Expert,
GST Being Paid on RCM Basis On Freight of Preservative Used Both in Taxable And Exempted Goods.
We are also availing full ITC. Whether it is correct and if not then how to pay GST on RCM.
Please give your expert opinion.
Regards,
Wadhwa
Applicabality of RCM-GST
19 Jan 2023 
3 Replies 
1873 Views Asked by
Proportionate input tax credit reversal required where transport services serve taxable and exempt supplies, RCM liability remains payable.
Freight/GTA services used partly for taxable and partly for exempt supplies are common input services; input tax credit attributable to exempt use must be reversed proportionately under section 17(2) read with Rule 42. The liability and quantum under the Reverse Charge Mechanism for GTA services remain unaffected by such proportionate reversal. If the claimed credit was utilised, interest liability may arise; only the proportion of ITC corresponding to taxable outward supplies is claimable. (AI Summary)
Freight/GTA services used partly for taxable and partly for exempt supplies are common input services; input tax credit attributable to exempt use must be reversed proportionately under section 17(2) read with Rule 42. The liability and quantum under the Reverse Charge Mechanism for GTA services remain unaffected by such proportionate reversal. If the claimed credit was utilised, interest liability may arise; only the proportion of ITC corresponding to taxable outward supplies is claimable. (AI Summary)