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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)
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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)
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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)
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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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