GST Applicable or Not Applicable

Lorry Rent for goods brought for sale by a GST Registered taxpayer is shown as experience in the P&L Account.Is GST Applicable or not applicable.What is the rate?.By which section of GST Act?
Replies (4)
Quick Summary
This discussion clarifies whether GST is applicable on lorry rent for goods intended for sale by a GST-registered taxpayer. It explains that GST is payable under the Reverse Charge Mechanism at 5% if the lorry is rented from a Goods Transport Agency (GTA). However, if the transporter is not a GTA, the service is exempt. The rate can also be 12% with full Input Tax Credit (ITC) availability, depending on the GTA's charging rate.

I. 5% GST (i.e. 2.5% CGST & SGST each or 5% IGST) with restriction on availment of input tax Credit on goods or services used in supplying the said service, other than input tax credit pertaining to input service used in the same line of business, i.e., service procured from another service provider providing services of transporting passengers in a motor vehicle or renting of a motor vehicle; or

ii. 12% GST with no restriction of ITC.
My Case Which Rate is Applicable?
Dear Subhagan.
GST is applicable when it is paid to GTA .
So if you are lorry rent to GTA , then yes GST payable under Reverse Charge & rate is 5% (refer Notification 13/2017 CT(r))

GST not Applicable if transporter is not GTA , infact it's Exempted Services by virtue of Notification 12/2017 CT(r)

Note : When GTA is charging 12% GST on FC , then no need to pay GST on Reverse Charge, Receptient can claim ITC on same.
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