Transportation of goods

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For local goods transportation, including cartage for incoming and outgoing materials, GST is generally not applicable if the amount is less than £750 or if using an auto-rickshaw, as these services are exempt. If a Goods Transport Agency (GTA) is involved and the charge exceeds £750 per consignment, GST is payable under the Reverse Charge Mechanism (RCM) by the recipient of the service. However, if the GTA charges are £750 or less per consignment, GST is not applicable even under RCM.

uma shankar khatri

uma shankar khatri (Querist)

25 March 2021 In case of Local transportation of goods i.e. cartage for incoming material and outgoing material, amount less than 750/- and more than 750/- , by auto or goods carrying motor vehicle not a GTA, IS GST applicable ? If applicable Who is Liable to PAY and at what RATE ? RCM or regular ?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

25 March 2021 1) Services by way of transportation of goods by road (other than by GTA and courier agency) is exempt from GST. No GST on transportation using Auto Rickshaw
2) If services of GTA are availed, then GST is payable under RCM by the person who pays for the freight charges (consignee/consignor, as applicable)
3) However, no GST (under RCM) is applicable on transportation charges paid to GTA provided the consideration for transportation is up to ₹750 per consignment.
There are other exceptions as well. Refer for more details: https://cleartax.in/s/goods-transport-agency-under-gst#st

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