GST ON TRANSPORTATION CHARGES OF NIL RATED, EXEMPTED SUPLLY

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This query is : Resolved

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This discussion clarifies whether Goods Transport Agencies (GTAs) need to charge GST when transporting nil-rated or exempt goods, such as frozen peas and sweetcorn. The consensus is that GST is not applicable on these transportation charges. GTAs should bill their clients without GST and report these transactions under 'exempt supply' in their GSTR1 filing.

Shalini RN

Shalini RN (Querist)
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12 December 2022 We are Goods Transport Agency, providing service to a Limited Company to transport nil rated products i.e., Frozen peas and Sweet corns under HSN Code 07102100 and 07104000 respectively. They supply the products through Bill of supply to their customers. My question is whether we are required to charge GST on transportation of these products. Is transportation charges are also exempt from GST under these circumstances?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 December 2022 Yes, GST under RCM not applicable in such a case.

Shalini RN

Shalini RN (Querist)
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13 December 2022 Thank you Sir,
So are we required to bill the transportation charges without GST to them? Where we have to show this particular transportation invoice in our GSTR1?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2022 Yes.
Show it under exempt supply.

Message likes : 1 times

Shalini RN

Shalini RN (Querist)
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13 December 2022 OK Sir, Thank you very much.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2022 You are welcome......
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