RCM Liability on Freight charges, Goods and Services Tax - GST

[Manjunath S]

Dear Sir,

We used to send Auto/Tempo to pickup Materials from Transporters like Mahalingesh, Patel Roadways, TCI, VRL Etc. Driver will pickup the material and deliver to us, so that we will pay his freight ₹ 1000/- per day.

Our Quiry is,

Will this freight charges attract RCM Liability ? No Invoice will be provided by him.

Kindly guide.

Manjunath S

Posts / Replies

[KrishnaIyer Mani]

I am of the opinion that the decision rendered by Hon'ble High Court of Allahabad Central Excise Appeal No. 23 of 2014 as reported in 2019 (29) G.S.T.L. 292 (All.) (Commissioner v. Kisan Sahkari Chini Mills Ltd.) = 2017 (3) TMI 1786 - ALLAHABAD HIGH COURT later on confirmed by Hon'ble Supreme Court in the case of Special Leave Petition (Civil) Diary No. 27143 of 2018 filed by Kisan Sahkari Chini Mills Ltd. = 2019 (1) TMI 1679 - SC ORDER, may have to be considered as per per incuriam for the reasons that the speeches of Hon'ble Finance Minister in the floor of the House was not taken into consideration. It is well settled when two views are possible, reference can be made to the speech of the Hon'ble Finance Minister. Refer the case of K.P. Varghese. This is my personal opinion.

[Anand Nair]

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

By. "by what ever name called" did they mean invoice raised by GTA.

Lorry receipt and consignment notes are the same?

[KASTURI SETHI]

Lorry Receipt, Goods Receipt, Bilti and Consignment Note all are same or at par. The purpose of all receipts is same i. e. Transporter takes responsibility to deliver the goods to the destination. By "whatever name called" means other than consignment note and those are at par.