Whether reverse charge is applicable on transportation of agriculture produce such as COTTON SEEDS, OIL CAKE, DE-OIL CAKE,PADDY RICE, WHEAT, ETC

Reply— 

GST is exempted on service of Transportation of following goods by goods Transportation agency— 

(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.

Thus, there is no requirement to pay GST on transportation of agriculture produce under reverse charge mechanism. But if the goods is not agricultural produce liability to pay tax under RCM shall arise.