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WHETHER I AM GOODS TRANSPORT AGENCY???

nitesh (ARTICLE) (201 Points)

08 September 2018

I am paying freight to the raiway for hiring the coach of the train in which I am supplying the goods of various persons. whether I am gta

If I am gta or not whether can I claim the credit on the GST paid to the railway on freight.????

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9 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

You are issuing builty /LR/Consignment Note to your customers?

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nitesh (ARTICLE) (201 Points)
Replied 08 September 2018

yes issuing builty

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

No you can't be registered as GTA as you are transporting goods through Rail not by road.

nitesh (ARTICLE) (201 Points)
Replied 08 September 2018

so can I claim itc of gst

Durgesh Mourya (219 Points)
Replied 08 September 2018

You are not Transporting Goods, Only you are selling. Railways doing transportation for you. you are just taking service. So be clear in your thoughts. you just move your goods in city, your godown to railway station only.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 08 September 2018

Yes you can claim ITC on railway freight paid

nitesh (ARTICLE) (201 Points)
Replied 08 September 2018

are u sure sir because on Google I searched there is restriction that railway is charging 5% so you can't claim

Vinod Babu (24191 Points)
Replied 09 September 2018

Transport of goods and passengers by rail will attract 5% tax under GST. Although it seems more than the current effective service tax of 4.5%, the effective GST liability will go down thanks to the mechanism of input tax credit which is now available on rail transport.

This will be exceptionally beneficial to the railways as there is no ITC available on transportation through Goods Transport Agencies (such as trucks). GST rate is also 5% on road transport thus making the rail freight more competitive.

Also it is important to note that your GST number should be on the invoice and they upload the same on GST portal.