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This discussion clarifies the Goods and Services Tax (GST) implications for a factory in Bangalore using an unregistered GTA to transport goods to Tamil Nadu. The primary tax applicable is Reverse Charge Mechanism (RCM) at 5% on the transport service, as the provider is unregistered. Additionally, due to the place of supply being Bangalore, intrastate GST (CGST+SGST) will also apply. The options are 5% without Input Tax Credit (ITC) or 12% with ITC.

Gopal Bhosle

Gopal Bhosle (Querist)

10 June 2020 Sir,

We have factory @ Bangalore and hired GTA (Un Registered , Bangalore) to supply goods from Karnataka to Tamilnadu.

Which tax will apply under GST??

Punit Gupta

Punit Gupta (Expert)

10 June 2020 GST shall be charged on RCM (Reverse Charge Mechanism) basis @ 5% on the transport services being availed by a registered person, where any transport service from an Unregistered person is availed.

Punit Gupta

Punit Gupta (Expert)

10 June 2020 Also, an addition to the previous reply, there shall be GST (CGST+SGST) charged as Place of Supply is Bangalore (Intrastate GST).
5% wihtout ITC, or 12% with ITC.
Hope this clears your query.

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