02 August 2025 Great question! Here’s the GST treatment for **truck rent paid directly to a truck driver instead of a Goods Transport Agency (GTA)**:

### 1. **Is GST applicable on truck rent to driver?**

* When you pay **rent to a truck driver (individual or owner-driver)** for using their truck, it is generally treated as a **service of renting of goods transport vehicles**.

* This service is **subject to GST** at the applicable rate (usually 5% without ITC for transport services).

### 2. **Who is liable to pay GST?**

* **If the truck driver/owner is registered under GST**, then **he has to charge GST** on the rent and you pay it as normal.

* **If the truck driver is not registered**, then **Recipient (you) may be liable to pay GST under Reverse Charge Mechanism (RCM)** depending on whether the driver is registered or unregistered and nature of service.

### 3. **Is RCM applicable on payment to truck driver?**

* **RCM under GST is applicable for GTA services** when the GTA is unregistered.

* However, **when you pay rent directly to an individual truck driver (not a GTA), the applicability of RCM is ambiguous but generally not applicable.**

* This is because **RCM on GTA services applies only when the GTA is unregistered and providing GTA services.**

* Truck rent to driver may be treated as a supply of renting services, which is a separate category.

### 4. **Practical conclusion:**

* If you pay truck rent to a driver who is **registered under GST**, you will get a GST invoice from him and pay GST as usual.

* If the driver is **unregistered**, generally you **do not have to pay GST under RCM** because renting a truck by an individual driver is not classified as GTA services.

* But GST law can be complex and interpretations vary — best practice is to:

* Get the driver registered for GST if turnover exceeds threshold.

* Obtain proper invoices showing GST.

### Summary:

| Scenario | GST liability | RCM Applicability |
| ---------------------------------------- | ---------------------------------------------- | ------------------------------- |
| Truck rent paid to registered driver | Driver charges GST normally | Not applicable |
| Truck rent paid to unregistered driver | No GST charged by driver | Usually no RCM |
| Payment to GTA (registered/unregistered) | GST charged by GTA/RCM applies if unregistered | RCM applies if GTA unregistered |

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**If you want, I can help you draft a sample invoice or letter clarifying this with the driver!** Would you like that?

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