RCM on transportation due to wrong reporting by GTA

[SUSHIL BANSAL]

Dear experts,

My client sold goods to unregistered recepient.Freight paid by the recepient.But the transporter(GTA) while filing GSTR-1 ticked ' GST payable on RCM' & mentioned GST no.of our client.Now while doing GST audit the department is asking for RCM on this transaction.Plz guide how we are liable for such RCM & how to pleade for that.

AI Summary

Client Not Liable for RCM on Freight Due to Incorrect GTA Marking, Per Notification No. 13/2017 A client sold goods to an unregistered recipient, who paid the freight. However, the transporter (GTA) incorrectly marked the transaction as 'GST payable on RCM' under the client's GST number. During a GST audit, the department demanded RCM payment from the client. An expert advised that the client was neither the payer nor liable for the freight, and thus not responsible for RCM under Notification No. 13/2017. Another expert concurred but suggested verifying the arrangement between the client and GTA to determine the correct recipient. The incorrect invoice cannot justify RCM liability on the client.