DEALER IS ENGAGED IN SALE OF UNBRANDED MAIDA WHICH IS TAX FREE. DEALER PAYS FRIGHT FOR THIS BUSINESS. WHETHER TAX UNDER RCM IS PAYBLE ON THIS FRIGHT?

Reply—Services provided by a goods transport agency to an Unregistered person, including an Unregistered casual taxable person is exempted from GST, refer sr. no. 21A of notification no.12/2017 (central tax rate) dated 28.06.2017. If the assessee is engaged in supply of Exempted goods and not registered then there will be no RCM on services provided by GTA.

If assessee is registered, taxpayer is required to pay tax under RCM except from following situation—

Services provided by a goods transport agency, by way of transport in a goods carriage of -

(a) agricultural produce;

(b) goods, where consideration charged for the Transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where consideration charged for Transportation of all such goods for a single consignee does not exceed rupees Seven hundred and fifty;

(d) Milk, salt and food grain including flour, pulses and Rice;

(e) Organic manure;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments.

are exempted under S.No.21 of Noti. No.12/2017-CT (Rate)] Dated: 28.06.2017.