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Determination of place of supply in case of gta under rcm

CA Yesha Shah (Assistant Manager- Accounts & Finance) (44 Points)

08 May 2019

Section 12(8) of IGST Act, 2017 says that the place of supply by way of transportation of goods to -

(a) registered person shall be location of such person .

But for example, i am a registered person located in Gujarat. I hire a GTA to transport goods to Maharashtra . I get an LR on which i make payment to the transporter. This transporter is located in all the states. Looking at the LR, i have no information that from which state's registration has he given the LR. How do i determine whether IGST is payable or CGST/SGST ?

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4 Replies

PRABAKARAN (ACCOUNT ASSISTANT) (62 Points)
Replied 08 May 2019

please verify the Transporter GST number

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CA Yesha Shah (Assistant Manager- Accounts & Finance) (44 Points)
Replied 08 May 2019

The transporter usually does not give the GST number. There are times where he give a number & later revises it .

there are also some transporters who are not registered .

narendra (Accountant) (281 Points)
Replied 08 May 2019

Call the transpoerter's office, provide them the LR no and details of Goods movement and ask them, following:-

1. Are you registered under GST? (in case LR or any doc that they issued does not show their GSTIN).

If they say they are UNREGISTERED, then book RCM liability under CGST & SGST.

If they are REGISTERED, then ask them to check and revert at the earliest with their GSTIN they will use to report your transaction under GSTR-1.

I know it is a tiresome exercise, but (with registered GTA's) once you get an idea how they determine which GSTIN to use, you can make a note for future reference.

Based on my experience so far, a registered GTA will mention a GSTIN on the LR that it is going to use to report your transaction in their GSTR-1.

Very rarely do they Not mention a GSTIN, or will report the transaction under another GST No. That is why you call them the first time.

You should, also cross-check your GSTR-2A for that month. If they have already reported the transaction, then make adjustments to your entry accordingly (if required) and report in your GSTR-3B.

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