FCM & RCM in Transport Business, Goods and Services Tax - GST

[Karthik Manoharan]

Dear Sir,

With ref to the above subject, i doing a transportation business and having a GST registration Number.

Hence, i want to know about the RCM & FCM in GST

So, Kindly do the needful.

With Regards

Karthik M

Posts / Replies

[mohan sehgal]

Please resolve the ISSUE for Service Reciever;

This limit of ₹ 750/- for a single cosignment.....whether he should deposit GST under RCM or he is Exempted.

A consignment is sent to a consignee on Freight Paid basis and the GTA issues a consignment Note(G.R.) for ₹ 650/-only...Whether the Consignor should deposit GST under RCM basis or he is exempted under the ₹ 750/-Limit.

Thanks.

[Siva Rama]

Respected Mohan sehgal sir,

I am also confused on the same question.

I feel GST RCM has to be paid in your case.

Expert views awaited

[KASTURI SETHI]

The limit of ₹ 750/- of all such goods is for a single consignee and not for a single consignment. In a truck goods may be loaded of so many consignees but for the purpose of exemption, consideration for a single consignee should not exceed ₹ 750/-. Emphasis is on the words, "a single consignee" .

[KASTURI SETHI]

Dear Sir (Sh.Sehgal Ji),. In my view, it is exempted. It is not the intention of Govt.to tax below the limit of ₹ 750/- .

[mohan sehgal]

Thanks....

If the consignment note is more than ₹ 750/-....the service receiver has to deposit 5% GST under RCM..

Now.,what would be the place of supply if the material is despatched inter-state....To be more precise...The consignor .sends goods to its buyer(consignee)inter-state on Freight Paid basis..The GTA issues a Consignment note(G.R.) for ₹ 1200/- and collect the amount from the consignor...Now,the Consignor has to deposit GST under RCM on ₹ 1200/-....It should be deposited under CGST/SGST or IGST....The consignment is inter state but the Freight has been paid at the location of the consignor.

What should be the place for supply for GST paid under RCM(for GTA Services).??

In other words; the place of supply is the location of consignor or the location of the consignee ??

[KASTURI SETHI]

The place of supply is the location of consignor as it is covered under Section 12(8)(a) of the IGST Act, 2017

In terms of Section 12(8) of the IGST Act, 2017, the place of supply of services by way of transportation of goods, including by mail or courier to -

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

GTA has provided service to a registered person (Consignor).