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About Freight in GST

21 May 2020

Respected Sir a party received bilty on purchase transporter is Non registered person and I sale out goods and freight charges received from seller what I to do in this regard what is the GST obilgation thereon

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4 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 22 May 2020

Your query is not clear. plz clarify & raise your query with example

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 23 May 2020

If a GTA provides the services to the certain businesses, recipient of services is required to pay GST under reverse charge.

Who will pay under Reverse Charge?

As per Notification No. 13/2017- Central Tax dated 28/06/2017 the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the receiver of service.

goods transport agency

Payment is by sender

If the supplier of goods (consignor) pays the GTA, then the sender will be treated as the recipient. If he belongs to the category of persons above then he will pay GST on reverse charge basis.

goods transport agency

Payment by Receiver

If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services. If he belongs to any of the above category of persons, then he will pay GST on reverse charge basis.

goods transport agency

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 23 May 2020

If a GTA provides the services to the certain businesses, recipient of services is required to pay GST under reverse charge.

Who will pay under Reverse Charge?

goods transport agency

Payment is by sender

If the supplier of goods (consignor) pays the GTA, then the sender will be treated as the recipient. If he belongs to the category of persons above then he will pay GST on reverse charge basis.

goods transport agency

Payment by Receiver

goods transport agency

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 23 May 2020

Reverse Charge if the GTA Is Unregistered As per Notification No.32/2017-Central Tax (Rate) dated 28th June 2017, intra-state supplies of services or both received by a registered person from any unregistered supplier, was exempted from GST if it does not exceed Rs. 5,000 in a day. However, the Government has cancelled the notification and hence, RCM applies on unregistered purchases for only specified list of supplies, which is yet to be notified.

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