RCM PAYABLE FOR FREIGHT ON INTERSTATE PURCHASE, LIABILITY TO BE PAYABLE WITH CGST & SGST OR IGST?

Reply—Applicability of IGST or CGST and SGST depends upon place of supply of service and location of supplier.

As per section 7(3) of IGST Act, 2017, subject to the provisions of section 10, supply of services, where the location of the supplier and the place of supply are in two different states  shall be treated as a supply of goods in the course of inter-State and IGST should be charged.

In case of GTA service, as per section 12(8) of 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.

As per section 2(15) of IGST Act, 2017, the term location of the supplier of services means where a supply is made from a place of business for which the registration has been obtained, the location of such place of business.

Thus, as mentioned in the query, location of supplier is in different state and place of supply is in different state, IGST should be charged.