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

Reverse charge mechanism: misreported GTA invoice does not automatically make consignee liable for freight services.
Whether a consignee is liable under the reverse charge mechanism depends on who was contractually and legally the recipient of the GTA's transport service; a supplier's erroneous invoice or portal entry naming the consignee and indicating RCM does not, by itself, create RCM liability where the consignee neither paid nor was contractually liable to pay freight. Verification of contractual arrangements and documentation that the consignee was not the service receiver are decisive, and procedural limitations on portal filings do not alter substantive recipient-based liability.