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regarding payment of RCM on freight charged on invoice, Goods and Services Tax - GST

Issue Id: - 118402
Dated: 4-3-2023
regarding payment of RCM on freight charged on invoice

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respected sir, supplier of goods has paid advance Rs-30000/- freight to the transporter of goods, against the freight Rs-36000/(no GST charged by the transporter on freight)-mention in the document issued by the transporter to the recipient of goods and the supplier mention the advance freight rs-30000 paid to the transporter in its Tax invoice issued to the recipient of goods, but does not charged any GST on the advance freight paid to the transporter. remaining balance of Rs-6000/- has been paid by the recipient of the query is whom does the liability of RCM arise, recipient or supplier.

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Showing Replies 1 to 4 of 4 Records

1 Dated: 4-3-2023
By:- Kiran Tahelani

to the best of my knowledge,

the person who is booking freight expense in his books of account and who is liable to pay freight will be liable for the gst under rcm (internal arrangements can be anything)

Experts may correct me if i am wrong.

2 Dated: 4-3-2023
By:- Shilpi Jain

What is the arrangement between buyer and seller? The RCM liability is on the recipient. Recipient is the person who is liable to pay the consideration. So if the GTA issues invoice for full amount to the buyer then he is the person who is liable to pay the consideration and thereby he would be liable to pay the tax under RCM.

3 Dated: 4-3-2023
By:- Shilpi Jain

So you will have to provide further facts on what is the understanding between buyer and seller and on whom the invoice is issued.

4 Dated: 9-3-2023
By:- Alkesh Jani

Dear Experts,

As per the query raised, can we apply provisions of Section 31 of CGST Act, 2017 and as advance is paid by the supplier, he becomes liable for payment of Tax and Rs.6000/- paid by the recipient will be adjusted by way of commercial Credit or Debit Note?



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