Requesting - Clarification on Goods Transport Expenses - Non GTA Clause - RCM Provision - reg.,

This query is : Resolved

Nandu Kumar (Querist)
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10 April 2021
I am Kumar from Vellore,Tamilnadu and I am a registered GST dealer and doing a business of FMCG Distribution in my town.
For the distribution of goods to the market place (Retail Outlets), I use to hire truck from a local goods carrier operator and pay him on a daily basis, depending upon the load factor and distance factor.

The Local carrier operator is not a GTA (who is not issuing Goods Consignment Note) and not GST registered operator. He simply provide the truck and make the transport of goods.

Even Loading and Unloading of goods also not part of the transport operator, I am paying directly to the local coolies.

He only provide the Invoice for the payment of transportation.

My daily payment to the transport operator is around Rs.5000 and the total annual payment will be Rs.14 to 15 Lakhs approximately.

Since, the transport operator, not coming under the ambit of GTA (upto my knowledge on GST Act) , RCM is not applicable, and the services by the local transport operator is exempted from GST.

So, As of now, I am not doing any Reverse Charge Mechanism (RCM) entry in my GSTR 1 and GSTR 3B returns for the transportation expenses which I have incurred.

I kindly requesting you to advise me on the transportation expenses, which I am incurring will come under GTA or Non GTA and moreover, the RCM is applicable or not applicable on the same.

Since, the Financial year 2020-21 is ended and going to file the March 2021 GST return in this week, I kindly requesting you to clarify my humble request at the earliest. Which may even helpfull to many of my collegue distributors in the distribution industry.

With regards,
Kumar,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 April 2021 It's non GTA RCM not applicable.

Nandu Kumar

Nandu Kumar (Querist)
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10 April 2021 I am very Thankful for your valuable advice Mr.Auditor Sir.

And, Having a doubt on the same, is that,
If I am using truck from a Single Transport Operator (Who is not giving Consignment Note and a NON-GTA Clause) and I am paying to him by every week bank transfers (Total Payment will be Rs.15,00,000 Annually approx) , will also not attract GST under RCM ???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 April 2021 It's exempt service GST not applicable under RCM or under forward charge.

Nandu Kumar

Nandu Kumar (Querist)
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11 April 2021 Thankyou Verymuch Sir.

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