Gst & transporters

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This query is : Resolved

TARIQUE RIZVI (Querist)

24 January 2018 We have to pay transportation charges but the transporter has informed me that there is no GST on small scale transporters. Whether in such cases reverse charges shall have to be paid to GST Department. The transporters have replied that till 31st March 2018 noting like reverse charges shall have to be paid to GST Department.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

24 January 2018 Services by way of transportation of goods are exempted:

(a) by road except the services of:

(i) a goods transportation agency;

(ii) a courier agency

(b) by inland waterways.

Therefore, the service of transportation of goods by road continue to be exempt even under the GST regime. GST is applicable only on goods transport agency, GTA.

If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services. If he belongs to any of the above category of persons, then he will pay GST on reverse charge basis.

CA S K MISHRA

CA S K MISHRA (Expert)

04 February 2018 Reverse charge on GTA apply only if the GTA has provided transportation service to Body corporate/firm etc.In respect of service provided to un-registered person its exempted.

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