TaxTMI 
TaxTMI 
Whether RCM on Freight Paid to Good Transport Agency Will be Applicable if Goods transported are Nil Rated/Exempt
Reverse Charge Mechanism on Freight
30 Dec 2025 
3 Replies 
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Freight RCM on GTA services applies even when goods are nil-rated or exempt, unless the GTA service itself is exempt.
Reverse charge on freight to a goods transport agency applies irrespective of whether transported goods are nil-rated or exempt; the controlling test is whether the GTA service itself is exempt under the relevant notification. Exemption depends on payer, value thresholds, and the nature of the GTA service, with specific exempt categories (agricultural produce, low-value consignments, certain food items, organic manure, registered publications, relief materials, defense equipment) and an exemption for hire of means of transport to a GTA. (AI Summary)
Reverse charge on freight to a goods transport agency applies irrespective of whether transported goods are nil-rated or exempt; the controlling test is whether the GTA service itself is exempt under the relevant notification. Exemption depends on payer, value thresholds, and the nature of the GTA service, with specific exempt categories (agricultural produce, low-value consignments, certain food items, organic manure, registered publications, relief materials, defense equipment) and an exemption for hire of means of transport to a GTA. (AI Summary)