IS RCM PAYABLE ON FREIGHT PAID TO GST REGISTERED TRANSPORTER IF HE DOESNT CHARGES GST ON BILL?

Reply—As per Sl. No. 1 of NN 13/2017-CTR, as amended, the liability under section 9(3) of the CGST Act towards reverse charge lies on the recipient of the services from the GTA.

Further, as per explanation (a) to the said notification, the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the recipient of the service.

In the above case, if your client is receiving service from GTA, recipient is liable to pay tax under reverse charge.