Transportation Charges

A Kerala State dealer purchase of Poultry feed from Karnataka State.Both dealers having Valid GSTIN.Cost of the Product is ₹.456700/-and it exempt from tax.But Kerala dealer paid ₹.28700/- for Transportation charges .Transporter has no GSTIN and has issued no invoice to Kerala dealer.Transportation charges is taxable or it is applicable RCM.Please clarify.
Replies (6)

Please refer topic covered on the following forum link.

https://www.caclubindia.com/forum/rcm-on-transportation-by-road-469103.asp

RCM is applicable in Transportation
GTA are exempted in GST to obtain Registration as per notification 5/2017 CT So if the Transporter is GTA , RCM attracts

But if he is not GTA then Transportation services by Road is exempted as per notification 12/2017 CT (r)
Question is that Kerala dealer have any tax liability in this case .
no, because goods is exempted then need not to pay Rcm

@ Subhangam Sreerangam

Please confirm if transporter is GTA.i.e. did they issue a Consignment Note (C/n) or L/R or Bilty.

Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no.12/2017-Central
Tax (Rate) dated 28.06.2017. (ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;
 
"The services provided by such individual transporters who do not issue a consignment note will be covered by the entry at s.no.18 of notification no.12/2017-Central Tax (Rate), which is exempt from GST."

If transporter has issued C/n then they are a GTA.

Further Animal feed is not specifically mentioned in the notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.21), the following services provided by a GTA (Heading 9965 or 9967) that are exempt from payment of tax.

Kerala dealer must pay 5% IGST on RCM basis.

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