Unregistered transporter supplied goods to other state
This query is : Resolved
01 November 2017
If transporter from Meerut (unregistered) supplied goods to Punjab. Then which tax applicable for buyer on transportation charges : IGST OR CGST+SGST ?
01 November 2017
IGST........
01 November 2017
Pehle CGST+SGST nhi lagta tha mam ?
01 November 2017
Means.....
01 November 2017
Means when GST implemented then I heared that in the case of Transportation we have to deposit only CGST+SGST under reverse charges on transportation charges even transporter's address in other state. Its only in transporter case. As in this case matter place of supply not place of transporters address.
02 August 2025
Great question! Here’s a clear explanation about **GST on transportation charges by an unregistered transporter from one state to another:**
---
### Scenario:
* Transporter is **unregistered** and located in **Meerut (Uttar Pradesh)**.
* Goods are transported to **Punjab**.
* Buyer is receiving goods in Punjab and paying transportation charges.
---
### What tax applies on transportation charges?
**Under GST, for transportation services of goods by a transporter who is unregistered, the liability to pay GST falls on the recipient (buyer) under Reverse Charge Mechanism (RCM).**
---
### Is it IGST or CGST+SGST under RCM?
* For **inter-state supply of transportation service of goods by an unregistered transporter**, **IGST under RCM** is applicable on the recipient.
* For **intra-state transportation**, **CGST + SGST under RCM** will apply.
---
### Why IGST in this case?
* Transportation from Meerut (Uttar Pradesh) to Punjab = **Inter-state supply**.
* Place of supply of service is destination of goods (Punjab).
* Since it’s inter-state, IGST applies.
* The transporter is **unregistered**, so buyer (recipient) must pay IGST under reverse charge.
---
### Clarification on your doubt about CGST+SGST
* The confusion comes from some **intra-state cases** where transportation is within the same state, then CGST+SGST under RCM applies on transportation charges.
* But here since the supply is **inter-state**, **IGST under RCM** applies irrespective of whether transporter is registered or not.
---
### Summary:
| Transport Case | Tax Applicability on Buyer (Recipient) |
| -------------------------------------- | ----------------------------------------------------- |
| Registered Transporter (Inter-state) | IGST paid by transporter (normal flow) |
| Unregistered Transporter (Inter-state) | Buyer pays IGST under Reverse Charge Mechanism |
| Registered Transporter (Intra-state) | CGST + SGST paid by transporter |
| Unregistered Transporter (Intra-state) | Buyer pays CGST + SGST under Reverse Charge Mechanism |
---
If you want, I can also share the relevant GST law sections or notifications for your reference! Would that help?
---
### Scenario:
* Transporter is **unregistered** and located in **Meerut (Uttar Pradesh)**.
* Goods are transported to **Punjab**.
* Buyer is receiving goods in Punjab and paying transportation charges.
---
### What tax applies on transportation charges?
**Under GST, for transportation services of goods by a transporter who is unregistered, the liability to pay GST falls on the recipient (buyer) under Reverse Charge Mechanism (RCM).**
---
### Is it IGST or CGST+SGST under RCM?
* For **inter-state supply of transportation service of goods by an unregistered transporter**, **IGST under RCM** is applicable on the recipient.
* For **intra-state transportation**, **CGST + SGST under RCM** will apply.
---
### Why IGST in this case?
* Transportation from Meerut (Uttar Pradesh) to Punjab = **Inter-state supply**.
* Place of supply of service is destination of goods (Punjab).
* Since it’s inter-state, IGST applies.
* The transporter is **unregistered**, so buyer (recipient) must pay IGST under reverse charge.
---
### Clarification on your doubt about CGST+SGST
* The confusion comes from some **intra-state cases** where transportation is within the same state, then CGST+SGST under RCM applies on transportation charges.
* But here since the supply is **inter-state**, **IGST under RCM** applies irrespective of whether transporter is registered or not.
---
### Summary:
| Transport Case | Tax Applicability on Buyer (Recipient) |
| -------------------------------------- | ----------------------------------------------------- |
| Registered Transporter (Inter-state) | IGST paid by transporter (normal flow) |
| Unregistered Transporter (Inter-state) | Buyer pays IGST under Reverse Charge Mechanism |
| Registered Transporter (Intra-state) | CGST + SGST paid by transporter |
| Unregistered Transporter (Intra-state) | Buyer pays CGST + SGST under Reverse Charge Mechanism |
---
If you want, I can also share the relevant GST law sections or notifications for your reference! Would that help?
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