RMC ON FRIGHT

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..... One of our client is Cement Dealer and charging tax under forward charges on cement sale @ 28%. Now cement company appointed him as C F Agent and paying secondary freight for Transportation of Cement bag from Depo to Sub dealer/customer location. My query is : Can dealer raise secondary freight invoice to Cement company under REVERSE Charges mechanism with the object that GST on freight will be pa .....

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..... id by cement company. - Reply By KASTURI SETHI - The Reply = Sh. Shailander Jain Ji, (1) A C F Agent is a pure agent in terms of Rule 33 of CGST Rules, 2017 . See Explanation below sub-clause (iii). The pure agent is responsible for payment GST on the amount of commission. (2) A C F Agent works for and on behalf of the Principal (owner). So the Principal is liable for discharging GST liabilities. .....

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..... (3) A person who pays (bears) the freight can pay GST on the amount of freight under RCM. (4) Thus the Cement Company, being the Principal can pay GST on the amount of secondary freight. - Reply By Shilpi Jain - The Reply = Reverse charge applicable only for GTA i.e. a person transporting the goods and issuing a consignment note. Pls see if these are satisfied. - Reply By KASTURI SETHI - The Reply .....

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..... = If GTA does not opt for forward charge mechanism, person paying freight to GTA is liable to pay GST under RCM and that person may be consignor or consignee (registered) . All the above three replies should be read conjointly. - RMC ON FRIGHT - Query Started By: - Shailander Jain Dated:- 11-11-2024 Last Replied Date:- 13-11-2024 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion .....

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..... Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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