RCM on GTA used for export of goods

[Rohit Jhunjhunwala]

Is RCM payable on GTA if the GTA service is used for export of goods by road to Bhutan. Freight is paid by the supplier. The goods are exported on delivered basis.

AI Summary

GST zero-rating vs RCM: when GTA road transport for export is zero-rated or liable under reverse charge rules If the road transport service by a GTA is wholly for export of goods and conditions for zero-rating are met (payment in convertible foreign exchange and required documentation), the service may be treated as export and effectively zero-rated, reducing GST liability. If the supplier of goods pays the freight and is the recipient of GTA services, reverse charge could apply to that recipient under RCM rules unless a specific exemption covers GTA services used for export. The precise outcome depends on whether zero-rating or an RCM exemption applies and on documentary proof; verify applicable notifications and export compliance.