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Applicability of gst on freight charges

Sudhansu Mohapatra (Audit Executive) (15 Points)

23 October 2018

Dear All

I have a doubt regarding the applicability of GST on GTA. I have a client having transporation business.

Whether GST is applicable on Freight Charges? If yes what is the rate of GST?

Plz Suggest.

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1 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 23 October 2018

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust