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 under GTA now applies even when freight for a single consignee falls below prior small-value exemption.
The reverse charge mechanism for goods transport agency services now applies to supplies where earlier small-value exemptions for single-carriage and single-consignee freight were omitted; the exemption clauses were removed by amendment to the Central Tax (Rate) notification, effective 18 July 2022, making recipients liable to discharge tax under RCM even for consignments that previously fell within the small-value thresholds.