regarding payment of RCM on freight charged on invoice

[FARIDUDDIN AHMAD]

respected sir, supplier of goods has paid advance Rs-30000/- freight to the transporter of goods, against the freight Rs-36000/(no GST charged by the transporter on freight)-mention in the document issued by the transporter to the recipient of goods and the supplier mention the advance freight rs-30000 paid to the transporter in its Tax invoice issued to the recipient of goods, but does not charged any GST on the advance freight paid to the transporter. remaining balance of Rs-6000/- has been paid by the recipient of the goods.my query is whom does the liability of RCM arise, recipient or supplier.

AI Summary

Debate on GST Liability for Reverse Charge Mechanism on Freight Charges: Supplier or Recipient Responsible? Section 31 CGST Act Discussed. A forum discussion centered on the liability for Reverse Charge Mechanism (RCM) on freight charges under the Goods and Services Tax (GST) framework. A supplier paid an advance of Rs. 30,000 to a transporter, with the remaining Rs. 6,000 paid by the recipient. Participants debated whether the supplier or recipient is liable for RCM. One participant suggested that the party booking the freight expense should bear the GST liability. Another indicated that the recipient, as the liable party for consideration, should pay under RCM. A third participant questioned if Section 31 of the CGST Act, 2017, could apply.