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GST Applicable or Not Applicable

03 August 2020

Wheather GST is applicable on transportation charges .The goods purchase for sales.Both buyers and sellers have GST registration.The trans
poter doesn't have GST registration.

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6 Replies

Chahat Bansal (226 Points)
Replied 03 August 2020

If the transporter is GTA then Buyer is responsible to pay GST on reverse charge .
In case the freight amount is less 1500 RS then GST is not applicable

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VIJAY SHARMA (14 Points)
Replied 03 August 2020

In case of transportation reverse charge mechanism applicable, If transporter wants to claim then he is liable to pay tax @ 12% under nor

subhagan sreerangam (7054 Points)
Replied 03 August 2020

The transporter is not GTA.In this connection GST is Applicable both Buyer and Sellers?

VIJAY SHARMA (14 Points)
Replied 03 August 2020

To be contd...
under normal charge or otherwise buyer has to pay tax @ 5% .. However if single transport amount is less than Rs750 or cosigner Rs1500 then GST SHALL NOT BE LEVIABLE...

Anjali Budhani (2 Points)
Replied 04 August 2020

Services by way of transportation of goods by road other than by a GTA or a courier agency are exempt from tax under entry no. 18 of notification No. 12/2017-Central Tax (Rate) dated the 28th June, 2017.

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Rajendra Prabhu (Associate ) (59 Points)
Replied 04 August 2020

Dear sir,

Under GST regime, GTA services are covered under reverse charge mechanism and transportation of goods by road has been exempted from GST.

You are required to identify whether supplier of transportation of goods is a GTA or Transportation service supplier ( Differentiating factor - consignment note)

If he is a GTA , you are required to identify the responsible person to pay to such GTA. Such person has to discharge the liability under RCM