Rcm applicable in gta below 750 Rs.

[Affirmservicesconsultancy Privatelimited]

Is RCM under GTA IS APPLICABLE FOR THE AMOUNT BELOW Rs. 750. IS THERE IS ANY CHANGES IN 2022.

[Amit Agrawal]

Against serial number 21 of Exemption Notification No. Notification No. 12/2017- Central Tax (Rate), in column (3), clauses (b) and (c) was omitted vide Notification No. 04/2022 -Central Tax (Rate) dated 13th July, 2022 & made effective from 18.07.2022..

Prior to this omission, exemption was available for the following services against serial number 21 of Exemption Notification No. 12/2017- Central Tax:

"Services provided by a goods transport agency, by way of transport in a goods carriage of

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(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty

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These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Ganeshan Kalyani]

As the exemption is omitted the RCM is applicable on said amount of freight charges.

[KASTURI SETHI]

Undoubtedly RCM is applicable. I agree with both experts.

[Padmanathan KV]

Effective from 18-07-2022, RCM is applicable even when the consideration for single consignee is below Rs.750.

AI Summary

Reverse Charge Mechanism Applies to Freight Charges Below Rs. 750 After Exemption Removed by Notification No. 04/2022 A discussion on a forum initiated by a consultancy firm questioned whether the Reverse Charge Mechanism (RCM) under Goods Transport Agency (GTA) is applicable for amounts below Rs. 750. Four replies were received. One response clarified that the exemption under Notification No. 12/2017-Central Tax for amounts under Rs. 750 was removed by Notification No. 04/2022, effective from July 18, 2022. Consequently, RCM is applicable for freight charges below Rs. 750. Other contributors agreed with this interpretation, confirming the applicability of RCM post the exemption's removal.