IGST or CGST+SGST in case of GTA

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This discussion clarifies whether to charge IGST or CGST+SGST for Goods Transport Agency (GTA) services. The key factor is the 'place of supply'. If the recipient of the GTA service is registered, the place of supply is their state. If the recipient is unregistered, the place of supply is where the goods are handed over to the transporter. Generally, if the supplier and recipient are in different states, IGST applies. If they are in the same state, CGST and SGST are applicable.

Rakesh Sharma

Rakesh Sharma (Querist)
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15 October 2020 Dear All Experts,

I have recently asked a query w.r.t. to liability of IGST or CGST+SGST in case of GTA service in the
below case. But till today, I am very confused. My humble request to all the experts please guide met in below equation :-
1) GTA : Delhi based (Regd.), Supplier : Haryana, Recipient : Haryana (Freight paid by Supplier)
2) GTA : Delhi based (Regd.), Supplier : Haryana, Recipient : Haryana (Freight paid by Recipient)
3) GTA : Delhi based (Regd.), Supplier : Haryana, Recipient : Delhi (Freight paid by Supplier)
4) GTA : Delhi based (Regd.), Supplier : Haryana, Recipient : Delhi (Freight paid by Recipient)
5) GTA : Delhi based (URD), Supplier : Haryana, Recipient : Delhi (Freight paid by Supplier)
6) GTA : Delhi based (URD), Supplier : Haryana, Recipient : Delhi (Freight paid by Recipient)

Kindly advise me.

Rakesh Sharma

Udaya Chandran

Udaya Chandran (Expert)
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15 October 2020 1) IGST, as per section 12 (8) of IGST Act, place of supply of services by way of transportation of goods to a registered person, shall be the location of such person, so the place of supply is Haryana and as per section 7 (3) of IGST Act, where the location of supplier and the place of supply are in two different states, it is considered as Inter-state supply, the GTA (the supplier) and the recipient (who makes payment) of the service are in different states, hence IGST to be charged.

2) IGST
3) IGST
4) CGST & SGST
5) IGST
6) CGST & SGST

Lekhraj sood

Lekhraj sood (Expert)
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15 October 2020 Simple rule -keep in mind in this case-
Place of supply for GTA service- if recipient (who hires the GTA- it can be seller or buyer of the goods but for GTA service he is the recipient) is registered , then state of registered recipient.
If recipient is unregistered then place of supply is the place (state) where goods are handed over to transporter.
So now you can decide easily - if GTA and recipient in same state then CGST+SGST and if in different states then IGST.

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