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GST on Goods Transport Agency

29 June 2017

Person is engaged in providing GTA service to a Gas company. Yearly billing is above 20 lacs. If the service receiver is paying on RCM basis, is it sufficient compliance? Or Service provider has to obtain registration and charge GST in bills?

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16 Replies

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 29 June 2017

if gta is 100% covered under reverse charge , no need to get register even turnover > 20lakh

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TEJAS KARNANI (student) (160 Points)
Replied 01 July 2017

Exemption from registration has been provided to GTAs who are making only those supplies on which recipient is liable to discharge GST under RCM. In your case if the person providing GTA service only to the company then there is no requirement for registeration irrespective of total value of supplies.

Onkar Jogalekar (13 Points)
Replied 01 July 2017

Thanks Sir. But where can I check the provision providing exemption or putting the burden of compliance under RCM on the service receiver?

TEJAS KARNANI (student) (160 Points)
Replied 03 July 2017

check this link-https://www.cbec.gov.in/resources//htdocs-cbec/gst/list-of-services-under-reverse-charge-2.pdf

Onkar Jogalekar (13 Points)
Replied 03 July 2017

Thank you sir. I have checked the above link and found the correct answer.

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TEJAS KARNANI (student) (160 Points)
Replied 03 July 2017

my pleasure sir.....would love to try to solve further queries if any!!!!

DEEPAK SONTHALIA (PARTNER) (22 Points)
Replied 03 July 2017

Sir, please confirm whether a factory is paying transportation expenses to transporter and paying 5% gst under RCM, is eleigible to take credit of that 5% so paid?

(Guest)

Can you please quote the relevant section of the GST Act, under which the same has been exempted... Thanks

TEJAS KARNANI (student) (160 Points)
Replied 06 July 2017

sir acc to my reading tax paid under rcm shall be eligible for input tax credit.

TEJAS KARNANI (student) (160 Points)
Replied 06 July 2017

for which exemption you need section?

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Sachin Gureja (7 Points)
Replied 06 July 2017

IS GTA ALLOWED TO BOOK GOODS WHERE THE CONSIGNOR(SELLER) IS REGISTERED WHILE THE CONSIGNEE(BUYER) IS NOT. IF ALLOWED DOES GTA HAVE TO CHARGE GST, AND WHERE SHOULD THE RETURN FOR THE SAME BE FILED, AT PLACE OF BOOKING OR PLACE OF DELIVERY

TEJAS KARNANI (student) (160 Points)
Replied 06 July 2017

Sachin Gureja,

sir, charging of gst by gta will depend on the person to whom service is provided i.e to the person liable to pay freight

Sachin Gureja (7 Points)
Replied 06 July 2017

BUT WHAT IS THE ANSWER TO MY FIRST QUESTION

CAN GTA BOOK GOODS ON INTERSTATE BASIS WHEN CONSIGNEE(BUYER) IS NOT REGISTERED IN GST

TEJAS KARNANI (student) (160 Points)
Replied 06 July 2017

Sachin Gureja
yes sir he can but in this case gta will pay the gst as reverse charge will not be apllicable in this case provided buyer of the goods is the person liable to pay freight & not registered