SIR I AM EXCLUSIVELY DEALING IN MILK AND MILK PRODUCTS AND I HAVE PURCHASED MAHINERY CHILLING ETC FOR TRANSPORT CHARGES GTA HAS ISSUED CONSIGNMENT NOTE KINDLY CLARIFY WHETHER I HAVE TO PAY GST RCM ON TRANSPORT CHARGES EVEN THOUGH I AM DEALING EXCLUSIVELY IN MILK PL CLARIFY

Reply- 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.

As per above information, exemption is only for transportation of milk not milk products, so in case of transportation of milk products, recipient of GTA service is liable to pay tax under reverse charge.

Further, Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the following recipients, namely: -

(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or

(b) any Society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or

(c) any Co-operative Society established by or under any law for the time being in force; or

(d) any body corporate established, by or under any law for the time being in force; or

(e) any partnership firm whether registered or not under any law including association of persons;

(f) any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.

are exempted under S.No.21A of Noti. No.12/2017-CT (Rate) (S.No.26) Dated: 28.06.2017. If you are an unregistered dealer you can take advantage of this notification.