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Gst under rcm for gta

franklings (MD) (135 Points)

05 June 2017

I am running GTA , and I am providing trucks to Defence canteens only for their transportation of canteen items from their main depot to their retail out lets. Suppose my bill amount is ₹ 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 Govt for the transportation of their canteen items. please clarify my calculation is correct or not and justify please

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9 Replies

vipul mittal (85 Points)
Replied 05 June 2017

You will have to take registration if your aggregate turnover is above Rs. 20.00 Lakhs

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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

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168250 Points)
Replied 06 June 2017

1. Who is issuing consignment note? yourself or truck owners?

2. Whether services provided by you falls under GTA? if yes, whether defence department is laible to pay GST under RCM?

As per the data, you are working as agent, liable to charge GST over your services over commission, provided the aggregate of all such services provided exceeds 20 lakhs. If the limit doesn't reach, no need to register under GST.

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

Sir

The truck owners are not issuing anything like consignement note/bills .... etc( on same day of transportation settle the drivers/owners by cash payment) .We are issuing bills to canteens and they are issuing cheques on monthlly / weekly basis .

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

Sir

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168250 Points)
Replied 06 June 2017

So, it will not fall under GTA.

Kind of truck rental service, and as said before you are getting commission for the trucks arrangement. You will be liable for charging GST at 18% over your commission as and when 20 lakhs limit exceeded.

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

But they are not ready to give service tax .What they are saying is they can pay the aggred amount olny as per the agreement and they are not libe to pay GST / ST

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168250 Points)
Replied 06 June 2017

Here, first thing is your commission receipts should exceed 20 lakhs during any FY for chargeability of GST.

Secondly, the service to the department should not be exempted for charging GST.

Thirdly, the agreement should have such clause to charge any tax liability over and above the contract price. Otherwise the amount would be deemed as of inclusive of GST.

franklings (MD) (135 Points)
Replied 19 June 2017

After implimentation of GST what are the documents to be submitted at check post for the movement of old and used household articles of defence persons in a truck.How do they collect taxes