PLACE OF SUPPLY FOR GOODS TRANSPORT AGENCY

This query is : Resolved

Shalini RN (Querist)
Follow

31 May 2024 We are registered Goods transport agency based in Bangalore. One of our customer who is also registered person in Karnataka has utilized our service to transport their products from Bangalore to Chennai. Please clarify whether we are required to bill under IGST or CGST.

Jaspal Singh

Jaspal Singh (Expert)
Follow

31 May 2024 depends on who you bill to..in bangalore or in chennai

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

13 August 2025 What Determines GST Type?
Under GST, the place of supply determines whether a supply is inter-state (IGST) or intra-state (CGST + SGST).
For Goods Transport Agency (GTA) services, Section 12(8) of the IGST Act applies when both the supplier and recipient are registered.

📌 Section 12(8) – Place of Supply for GTA:
“The place of supply of services by way of transportation of goods (including by mail or courier), to a registered person, shall be the location of such person.”
🧾 Application to Your Case
Recipient is registered ✅
Place of supply = Karnataka (Because recipient is registered and located in Karnataka)
Supplier also in Karnataka ✅
✅ Therefore:
This is an Intra-State supply
You should charge CGST + SGST
🚛 Even Though Goods Are Moving to Chennai?
Yes, the actual movement of goods (Bangalore → Chennai) does not affect the place of supply in this case, because Section 12(8) prioritizes the recipient’s location (if registered).
🔁 If the Customer Was Unregistered?
If the recipient were unregistered, the place of supply would instead be:
Place where the goods are handed over for transportation
→ Which would be Bangalore in your case.
If recipient is in a different state, that may result in IGST – but that's not applicable here since your customer is registered.
✅ Final Answer:
You should bill under CGST + SGST, not IGST.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now