A company engaged in business that is texfree and but registed with gst.
company have own vehicles, also want to start Transportation Services.
1.Is the company required to charge the service bill on transportation service with 12 percent Gst .
2.The company need not to charge gst, the receipent will pay the tax under RCM.
which is the correct option.
IF the supply made by company is exempted from levy of GST, then neither company nor recipient is required to pay GST on transportation services irrespective of forward charge or reverse charge.
However, if the company is engaged in supply of taxable goods or services, then supplier is required to either pay tax at 12% and avail the ITC or pay tax at 5% without availing any ITC on inward supplies.
If the supplier of transportation services has opted to pay tax under 12%, then recipient is no longer required to pay tax on reverse basis on inward transportation services. But if the supplier is paying tax at 5% then recipient is also required to pay tax at 5% on reverse charge basis.
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