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Gst for transportation of goods

franklings (MD) (135 Points)

15 May 2017

If an individual arranging trucks to defence department for transportation of canteen items from their main godown to different outlets.Please note that he is only arranging trucks by making payments to truck owners from his own pocket and he is getting montlhy payment from defence department after raising the bills .Whether he need to collect service tax/ GST from defence depatment or exempted from ST/GST

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9 Replies

CA Altamush Zafar (GST Consultant) (15961 Points)
Replied 15 May 2017

Of course he will charge GST as he is providing service of arranging trucks. He is eligible to take inputs on charges by truck owners. and will charge GST on service of providing trucks. At the most there can be an exemption as service is being provided to Government deptt however no exemption is notified till date.

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franklings (MD) (135 Points)
Replied 05 June 2017

I am running GTA , and I am providing trucks to Defence canteens only for their transportation of canteen items. Suppose my bill amount is Rs 10000 ,So as per RCM the service receiver has to pay GST to Govt. That is defence canteens has to take GST registration and pay the 5% of 10000 as GST for service.

So in my view i need not take GST registration as CSD (defence canteens) are paying GST to Gove for the transportation of their canteen items. please clarify my calculation is correct or not and justify please .

CA Altamush Zafar (GST Consultant) (15961 Points)
Replied 05 June 2017

Service of goods transportation and service of providing goods on rent are two different services and have to be treated differently.
To save yourself from getting registered amend your contract so instead of providing trucks you directly give him transportation service. Therefore gst will be payable by your customer and not you.
However you will have to get registered if your turnover exceeds 20 lakhs even if you dont have to pay gst on it due to rcm.

franklings (MD) (135 Points)
Replied 06 June 2017

Sir

We are giving / arranging trucks to defence canteens only. we are not giving trucks to local parties or to individuals etc.whatever may be the amount the liability of paying service tax is with the respective canteens only as per RCM.Then what is the necessity of taking GST registration ,Please clarify

franklings (MD) (135 Points)
Replied 06 June 2017

Sir

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CA Altamush Zafar (GST Consultant) (15961 Points)
Replied 06 June 2017

For reverse charge to be applicable you have to provide services in capacity of gta.
For gta you must provide services of transportation of goods by road and issue a consignment note. If any of the two conditions are not satisfied then you are not gta and reverse charge will not be applicable.
Even where rcm is applicable and all your supplies are under rcm even then you have to take registration if your turnover exceeds 20 lakhs irrespective of the fact that you are not liable to pay gst due to rcm.

srinivas (Finance Manager) (239 Points)
Replied 06 June 2017

Hi,

Visit the following url

https://www.accounts4tutorials.com/2017/05/final-gst-rates-for-transport-of-goods.H T M L

franklings (MD) (135 Points)
Replied 24 June 2017

For transportation of old & used household items of serving defence personal for their transfer from one state to another state, Is this service exempted from GST?

Post GST,what are the documents required to cross the check posts for the above mentioned transportation?

(As per the existing notification and Govt orders, all tax and toll is exempted for defence serving officers/personal. Only defence office exemption authority / official letter with round seal is required for E clearance enroute for any states)

franklings (MD) (135 Points)
Replied 20 July 2017

Sir,
Is it necessary to collect any GST from serving defence personals for transportation of
their old and used household effects which does not have commercial value from one place to
another during their transfers. The passenger is also accompanied with the household
effects