We are getting consignment thru Transporter against Consignment note - freight is paid by the Consignor. For lifting the material from Transporter godown, they are taking loading charges and issuing receipt as 'Labour'. Are we required to pay RCM on the same.
Another query, some Transporters are not uploading details on their GSTR-2B, while we are paying the RCM on freight paid to them. Can we claim RCM credit. Thanks
Reverse Charge Mechanism Applies to Transporter 'Labour' Charges Under GST; Composite Supply Debate Affects Tax Liability A discussion on the applicability of Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) for loading charges labeled as 'Labour' by transporters. The consensus is that these charges are integral to the Goods Transport Agency (GTA) services, thus subject to GST under RCM. There is debate on whether these charges are part of a composite supply, potentially affecting tax liability. Input Tax Credit (ITC) can be claimed for RCM-paid taxes, though issues arise if transporters do not upload details in GSTR-2B. The querist seeks practical advice due to the low amount involved. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
