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Applicability of GST on Transport Commission Agents

Rules 1098 views 1 replies

I have a query regarding Transportation Services.

A GTA (Say A) takes a vehicle from a Broker (Say B), who in turn takes the vehicle from Truck Owner (Say C) to supply the same vehicle to consignor/consignee. 'A' issues the consignment note in this transaction. 'B' is just an intermediary/middle man. 'B' charges 'A' say Rs. 23000/- and pays 'C' Rs. 20000/-. That is the commission earned by 'B' is Rs. 3000/-. As per my understanding the Broker 'B' is liable to charge GST as an intermediary.  Pls clarify the following query :-

1. Is there any way out to keep the Broker B out of the GST ambit ?

Replies (1)

You are correct. Broker 'B' is an intermediary and liable to charge GST on their commission earned, which is Rs. 3000/- in this case. As per the GST laws, a GTA (Goods Transport Agency) is liable to pay GST on the services provided. In this case, Broker 'B' is providing intermediary services and earning a commission, which is a taxable supply. Broker 'B' should charge GST on their commission of Rs. 3000/- and issue an invoice to 'A' (GTA). The GST rate would depend on the type of vehicle and the location of the supplier and recipient.


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