GST Registration for Transporters

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This discussion clarifies GST registration requirements for transporters. If a transporter's entire supply falls under Reverse Charge Mechanism (RCM), registration may not be mandatory under Section 23 of the CGST Act. However, if they also earn income like warehouse rent exceeding ₹20 lakhs, registration becomes necessary. Crucially, aggregate turnover is calculated on a PAN basis, meaning registration is required in all states if the total turnover exceeds the threshold, even if individual branches fall below it.

DIVYESH JAIN

DIVYESH JAIN (Querist)

11 September 2020 Dear Sir,

I want to know is it mandatory to obtain GST Registration incase of a Transporter.

My client is into business of Transportation of Goods by road and has a turnover of around 100 crores and has taken 6 registrations for different states in his individual PAN. He falls under RCM so he doesn't have to pay any GST.

Please reply as my client is asking whether he can surrender his GST.

Regards,
Divyesh Jain

CA Anita Bhadra

CA Anita Bhadra (Expert)

11 September 2020 If your client, the transporter's total supply falls under RCM, he need not take registration under sec 23 of the CGST Act

DIVYESH JAIN

DIVYESH JAIN (Querist)

12 September 2020 Ok, If he is also earning warehouse rent income which exceeds 20 lacs, does he has to take registration in all the 6 branches. The 20 lacs amount exceeds only in 3 out of the 6 branches he has. Does he needs to be registered in all the 6 branches or only in 3 branches where rent income above 20 lacs is earned.

CA Anita Bhadra

CA Anita Bhadra (Expert)

12 September 2020 Yes
Aggregate turnover is PAN basis

DIVYESH JAIN

DIVYESH JAIN (Querist)

12 September 2020 Ok, That means he has to be registered with GST in all the 6 branches even if the 3 branches has rent income below 20 lacs. Right?

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)

27 September 2020 Yes. In GST, turnover is calculated on PAN basis and not on GSTN basis. So, if the turnover in one state exceeds the prescribed amount, then you have to register in all other states too.

DIVYESH JAIN

DIVYESH JAIN (Querist)

27 September 2020 Thanks a lot Anita and Kushwanth for your response.

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