Tax implication in hands of transporter under GST regime

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This discussion clarifies the GST implications for transporters. If a transporter issues a consignment note (acting as a GTA), they can choose to collect GST at 12% under forward charge or opt for a 5% rate where the recipient pays under the Reverse Charge Mechanism (RCM). Transportation of goods not covered by GTA services is currently exempt from GST.

JIGNESH KRISHNAKANT KAPADIA

JIGNESH KRISHNAKANT KAPADIA (Querist)
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26 February 2020 Sir / Madam,

Pls. elaborate what would be GST burden in case of freight income invoice raised by transporter. Whether transporter has to collect GST and paid it to govt. or it comes under purview of RCM.

Looking to hear you soon

Jignesh Kapadia

CA Anita Bhadra

CA Anita Bhadra (Expert)
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27 February 2020 In case, the transporter is GTA ( issues consignment note), he has an option to collect GST under forward charges @ 12% and pay to the Government. Otherwise, he can charge @ 5% and the recipient of the services need to pay tax under RCM.

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CA Anita Bhadra

CA Anita Bhadra (Expert)
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27 February 2020 Transportation of goods other than GTA is exempted under GST

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