Question ID : 44652

RCM

one of my client manufacturing Rice which is exempted goods however its by product '"Bran" is taxable at 5% ,while purchasing some capital goods it has to pay freight to GTA,will RCM be applicable.

Answer ID : 85424

If registered under GST then RCM applicable

Answer ID : 85427

If your client is unregistered under GST, then the Goods Transport Agency Services received from the transporter would be exempt vide Sl. No 21A of the exemption notification 12/2017-CT (R) amended from time to time. In such a scenario payment of taxes under reverse charge will not arise. If your client is registered under GST, then the GTA Services received for which freight paid would become taxable under GST. If the transporter is also registered and has opted to pay tax under forward charge by filing Annexure-V,then payment of taxes under RCM will not arise. If your transporter is a GTA and is unregistered, then you shall pay tax under RCM. If the GTA has not filed Annexure V, then your client shall pay tax under RCM. However, if the services received are in the nature of Goods Transport Operator [GTO], then the same are exempt under GST.

Answer ID : 85450

Yes

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