RCM on GTA Explained Simply – GST on Transport Charges

CA RAMAKRISHNA SANJAY

7760252581

1. What is RCM in Simple Words?

Normally, the seller pays GST.

But under RCM (Reverse Charge Mechanism),
👉 buyer (recipient) pays GST instead of seller

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2. What is GTA?

GTA means a transporter who:
👉 issues a consignment note (LR copy)

❌ If no consignment note → Not GTA → No RCM

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3. When RCM Applies on Transport Charges

RCM applies if:

✔ Transporter is a GTA
✔ You are:

• Business owner

• Company

• Firm

• GST registered person

👉 Then YOU have to pay GST

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4. When RCM Does NOT Apply

❌ If you are:

• Individual (personal use)

❌ If transporter:

• Does NOT give consignment note

• Charges GST @ 12%

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5. GST Rate on GTA

• 5% under RCM (you pay)

• 12% under normal GST (transporter pays)

👉 Always check invoice:

• If no GST → You pay under RCM

• If 12% GST charged → No RCM

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6. Simple Example

You paid transport charges: ₹50,000

RCM GST = 5% = ₹2,500

👉 You will:

• Pay ₹2,500 to government

• Take ITC (if business use)

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7. Important Points to Remember

✔ Always check consignment note
✔ Confirm if transporter is charging GST or not
✔ Pay GST through cash (not ITC)
✔ You can claim ITC later

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8. Final Conclusion

RCM on GTA is simple:

👉 If transporter doesn’t charge GST → You pay
👉 If transporter charges 12% GST → He pays

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Quick One-Line Rule

👉 “No GST on invoice = RCM applicable (you pay)”

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FAQs on RCM on GTA under GST

Q1. Who pays GST on GTA services?

👉 If transporter does not charge GST, then recipient pays GST under RCM.

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Q2. How to check if RCM applies?

👉 Check invoice:

• GST charged (12%) → No RCM

• No GST charged → RCM applies

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Q3. What is the GST rate under RCM?

👉 5% (2.5% CGST + 2.5% SGST)

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Q4. Is consignment note mandatory for RCM?

👉 Yes.

• With consignment note → RCM applies

• Without it → No RCM

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Q5. Can ITC be claimed on RCM paid?

👉 Yes, if used for business purposes.

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Q6. Can RCM be paid using ITC?

👉 ❌ No
👉 Must be paid in cash only

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GeM Registration in India : How to Sell to Government & Win Big Contracts

CA RAMAKRISHNA SANJAY

7760252581

🔥 Why GeM?

Want the Government as your client?

• Assured payments

• Bulk orders

• No middlemen

GeM (Government e-Marketplace) enables businesses to sell directly to government departments through a fully digital platform.

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📌 What is GeM Registration?

GeM Registration allows businesses to list and sell products/services to:

• Ministries

• PSUs

• Government departments

✅ Who Can Register?

• Proprietorship

• Partnership / LLP

• Private Limited

• Trust / Society

📄 Basic Requirements:

• PAN

• Aadhaar

• Bank Details

• GST (if applicable)

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🧭 Simple Registration Process

1. Register on GeM portal

2. Complete profile & upload documents

3. List products/services

4. Verify via DSC/e-Sign

5. Start selling & bidding

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💰 How You Earn on GeM

• Direct Purchase – Instant orders

• Bidding – Competitive pricing

• Reverse Auction – High-volume opportunities

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📈 Key Benefits

• Direct access to government buyers

• Better cash flow (timely payments)

• Increased credibility

• Equal opportunity for MSMEs

AD Code for Exporters – Meaning, Registration Process, Documents & Benefits

CA RAMAKRISHNA SANJAY

7760252581 

🔷 What is AD Code?

AD Code (Authorised Dealer Code) is a 14-digit code issued by your bank (approved by the Reserve Bank of India).

It links your export transactions with your bank account and is mandatory for customs clearance.

👉 In simple terms:
No AD Code = No export clearance

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🔷 Why is AD Code Important?

AD Code plays a critical compliance role in export business:

• ✔ Enables customs to process your shipping bill

• ✔ Helps RBI track foreign currency inflow

• ✔ Required to receive export payments legally

• ✔ Necessary for claiming export incentives

👉 Without AD Code:

• Your shipment can get stuck at customs

• Payments may face regulatory issues

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🔷 Who Needs AD Code?

You need AD Code if you are:

• An exporter with IEC from Directorate General of Foreign Trade

• Exporting goods outside India

• A merchant exporter or manufacturer exporter

❌ Not required for:

• Service exporters (in most cases)

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🔷 When Should You Apply for AD Code?

Best practice:

👉 Apply before your first export shipment

Also required when:

• Exporting from a new port

• Changing your export bank account

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🔷 How to Get AD Code? (Step-by-Step)

✅ Step 1: Contact Your Bank

Approach your current account bank (Authorised Dealer bank)

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✅ Step 2: Submit Documents

Basic documents required:

• IEC Certificate

• GST Registration

• PAN Card

• Bank details

• Request letter

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✅ Step 3: Get AD Code Letter

Your bank will issue:

• 14-digit AD Code

• Official signed & stamped letter

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✅ Step 4: Register AD Code on ICEGATE

Register through ICEGATE:

• Upload AD Code letter

• Select port

• Get customs approval

👉 Note:
AD Code must be registered separately for each port

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🔷 Frequently Asked Questions (FAQs)

❓ Is AD Code mandatory?

👉 Yes, for exporting goods from India.

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❓ Can I have multiple AD Codes?

👉 Yes, but advisable to use one primary bank for simplicity.

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❓ Is AD Code required for every port?

👉 Yes, separate registration required for each port.

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❓ How long does it take?

👉 1–3 working days from bank + ICEGATE approval time.

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ECGC Registration in India – Eligibility, Benefits, Cost and Complete Process for Exporters

CA RAMAKRISHNA SANJAY

7760252581

Exporting goods or services to international markets involves payment risk from foreign buyers. To protect Indian exporters from such risks, the Government of India has established Export Credit Guarantee Corporation of India (ECGC).

ECGC provides export credit insurance, helping exporters safeguard their receivables and expand into global markets with confidence.

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What is ECGC Registration?

ECGC registration refers to obtaining export credit insurance coverage from the Export Credit Guarantee Corporation.

It protects exporters against:

✔ Non-payment by foreign buyers
✔ Insolvency of overseas buyers
✔ Political risks in importing countries
✔ Delays in payment beyond agreed credit terms

ECGC operates under the administrative control of the Ministry of Commerce and Industry.

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Who Should Obtain ECGC Registration?

ECGC coverage is particularly useful for:

📦 Exporters selling goods on credit terms
🌍 Businesses exporting to new international buyers
🏭 Manufacturers entering high-risk export markets
🏦 Exporters seeking bank finance against export receivables

Banks also prefer exporters to have ECGC coverage when granting packing credit or post-shipment finance.

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Types of ECGC Policies

ECGC offers different policies depending on export activity.

1. Shipment Comprehensive Risk Policy

This is the most common policy used by exporters.
It covers short-term export receivables against commercial and political risks.

2. Specific Shipment Policy

Provides insurance for a particular export order or shipment.

3. Buyer Exposure Policy

Suitable when exporters have regular business with specific overseas buyers.

4. Export Turnover Policy

Covers entire export turnover under a single policy.

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Step-by-Step ECGC Registration Process

Step 1 – Obtain Import Export Code (IEC)

Exporter must first obtain IEC from the Directorate General of Foreign Trade (DGFT).

Step 2 – Register on ECGC Portal

Visit the official ECGC website and create a customer account.

Step 3 – Submit Online Application

Provide details such as:

• IEC number
• PAN of the exporter
• Business profile
• Export markets
• Bank details

Step 4 – Upload Required Documents

Typical documents include:

📄 IEC certificate
📄 PAN card
📄 GST registration
📄 Bank certificate
📄 Financial statements
📄 Export orders (if available)

Step 5 – ECGC Risk Assessment

ECGC evaluates:

• Exporter financial profile
• Buyer country risk
• Export experience

Step 6 – Policy Issuance and Premium Payment

After approval, the exporter pays the insurance premium, and the policy becomes active.

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Government Cost for ECGC Registration

There is no fixed registration fee for ECGC.

The main cost is the insurance premium.

Typical cost range:

• Premium: 0.3% – 0.8% of export value
• Minimum premium: ₹5,000 – ₹10,000 annually (approx.)

The premium depends on:

✔ Country risk classification
✔ Credit period offered to buyer
✔ Export turnover
✔ Type of policy selected

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Conclusion

ECGC registration is an important risk management tool for exporters. By providing insurance protection against payment defaults, it enables Indian businesses to trade globally with greater financial security.

APEDA Registration for Exporters in India | Eligibility, Benefits, Process & Documents

 

CA RAMAKRISHNA SANJAY

7760252581

India is a major exporter of agricultural and processed food products. To regulate and promote these exports, the Government established the Agricultural and Processed Food Products Export Development Authority under the Ministry of Commerce & Industry.

Exporters dealing in certain agricultural products must obtain a 📜 Registration-cum-Membership Certificate (RCMC) from APEDA before exporting these products.

This article explains ✅ who needs APEDA registration, 📌 its benefits, and 🧾 how to obtain it.

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📌 What is APEDA Registration?

📜 APEDA Registration refers to obtaining an RCMC certificate issued by APEDA.

It allows exporters to legally export scheduled agricultural and processed food products from India.

⚙️ Since 2023, applications are submitted through the portal of
Directorate General of Foreign Trade using the e-RCMC system.

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👤 Who Should Obtain APEDA Registration?

APEDA registration is mandatory for exporters dealing in certain scheduled agricultural products, such as:

🌾 Fruits & vegetables
🥩 Meat and poultry products
🥛 Dairy products
🍯 Honey and jaggery
🍚 Cereals and cereal products
🍬 Sugar products
🌺 Floriculture products
🍲 Processed food products

👉 Any person or entity exporting these products must obtain APEDA registration after obtaining Import Export Code (IEC).

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🏢 Who Can Apply for APEDA Registration?

The following business entities can apply:

👤 Individual exporters
🏪 Proprietorship firms
🤝 Partnership firms
🏢 LLPs
🏭 Private Limited Companies
📦 Export trading companies

✔ The basic requirement is having a valid IEC issued by DGFT.

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🌟 Benefits of APEDA Registration

Obtaining APEDA registration offers several advantages for exporters.

🌍 1. Export Promotion Assistance

APEDA provides financial assistance to promote agricultural exports.

🎪 2. Participation in International Trade Fairs

Registered exporters can participate in international exhibitions and buyer-seller meets.

📊 3. Market Intelligence Support

Exporters receive updates on global demand, export opportunities, and international markets.

🧪 4. Quality Development Programs

APEDA helps exporters improve quality standards and global compliance.

💰 5. Access to Export Incentives

Registered exporters can access various export promotion schemes and support programs.

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📑 Documents Required for APEDA Registration

Typically the following documents are required:

📜 Import Export Code (IEC)
🪪 PAN card of the applicant
🏦 Cancelled cheque / bank certificate
🧾 GST registration certificate (if applicable)
📍 Business address proof

⚠️ Most details are automatically fetched from the IEC database during the application.

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📥 Once approved, the RCMC certificate can be downloaded online.

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✅ Conclusion

APEDA registration is an essential compliance requirement for exporters dealing in agricultural and processed food products.

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TDS on Property Purchase | Form 26QB Replaced by Form 141

 

CA RAMAKRISHNA SANJAY

7760252581

TDS on Property Purchase: Transition from Form 26QB to Form 141 (Effective 1 April 2026)

Introduction

The Income Tax Department has introduced Form 141 to simplify reporting of TDS on property transactions. From 1 April 2026, Form 141 will replace Form 26QB for reporting TDS under Section 194-IA of the Income-tax Act. This change aims to make compliance easier, particularly in transactions involving multiple buyers and sellers.

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What is TDS on Property Purchase?

Under Section 194-IA, any buyer purchasing an immovable property (other than agricultural land) must deduct 1% TDS if the sale consideration exceeds ₹50 lakh.

Key compliance points:

• TDS Rate: 1% of consideration
• Threshold: Applicable if property value is ₹50 lakh or more
• Time limit: TDS must be deposited within 30 days of deduction
• Earlier form: Form 26QB
• New form: Form 141 (effective 1 April 2026)

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Why Form 141 is Introduced

Earlier, buyers had to file separate Form 26QB for every buyer–seller combination, which often 

Important Rules Buyers Should Know

• TDS applies if total property value exceeds ₹50 lakh, even in joint purchase.
• Ownership share mentioned in the agreement determines TDS liability.
• GST should not be included while calculating TDS.
• Incidental charges such as parking, maintenance, club membership should be included in property consideration.
• Even if payment is made through housing loan, the buyer must deduct and deposit TDS.

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Correction of Errors

If incorrect details are reported in Form 26QB or Form 141, corrections can be made through the TRACES portal. Timely correction ensures that the seller receives proper TDS credit and avoids tax disputes.

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