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GST-Lorry Advance

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53 Points Posted on 01 November 2021

Help me in Following Query

Mr A in State -AP send goods to Mr B in State -MP via lorry

Now Mr A takes lorry for hire from MR.C Transport Agent for Arranging Lorry for transport of Goods

Mr.A pays Lorry Advance say Rs 5,000/- and is added in bill below the line item and balance is paid by Mr.B

whether Mr A liable to pay GST under Heading 9966 Hiring of Vehicles for that Rs 5000/- or not,

If Yes what Rate?

Replies (7)

Quick Summary

This discussion concerns whether Goods and Services Tax (GST) is applicable on a Rs 5,000 lorry advance paid by Mr. A in Andhra Pradesh to Mr. C, a transport agent, for moving goods to Mr. B in Madhya Pradesh. The advance is added as a below-the-line item on the bill, with the balance paid by the recipient. The consensus suggests that if the transporter is unregistered and essentially acts as a commission agent, GST is not applicable on this advance.