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This query is : Resolved 

Dear Expert
Please let me know if a Manufacturing Company (pvt Ltd) uses it own Trucks on which they had taken ITC generate income by charges freight from there customer
Q1 Freight charged is income of Company under GTA ?
Q2 What will be the rate of GST to be charges ?
Q3 if company buy there raw material and pay freight on it to other transporter what will the GST impact on that freight inward is it under reverse charges if transporter is unregistered or company has to be pay GST 12% as normal taxpayer as it charges freight from other dealer in above Question no. 1

Request you to please suggest me on above queries

Amit Jain

GTA means any person who provides service in relation to transport of goods by road and issues consignment note.
In your case, whether manufacturing company issues consignment note charging freight?

Services provided by person other than GTA by way of transportation of goods by road are exempt.
Services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax

Following link of FAQ released by CBIC will help you to understand transport/ freight-related issues.;jsessionid=F0A10BA85F7B1C49EEC9E535FD091060

1 No, such freight will not fall under GTA.
2 The same rate applicable for materials has to be charged.
3 It's not under reverse charge.

Yes Sir
Since manufacturing company charges freight from its customer, the composite supply factor is applicable and the same rate applicable for material has to be charged.

I missed the point in the query ' freight from their customer '. I was to correct it immediately but unable to do as I was traveling and lost network connectivity.
Error is highly regretted

Thanks for kind advice
But we are not charging freight on invoice separate Good receipt issued to Debtors
Still we have to pay at same rate applicable for material (18%) or 12% as GTA do

18% GST applicable as you are tranpoting your materials to your customers.

Thank you Sir (SEETHARAMAN) and ma'm (Anita Bhadra) for providing the helpful information for me
Amit Jain


Welcome, Mr.Amit Jain.
Small advice from CA Seetharaman Sir in this regard - Can manufacture also work in the capacity of GTA and transport goods to the customers

Yes, manufacturers can own trucks to transport the goods manufactured to customers. It will not fall under GTA.

Thanks a lot, sir for a prompt response.


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