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GST on Freight

paras jain (NA) (44 Points)

07 September 2017

yadi koi firm interstate se purchase karta h or transport ki bilty jo fright lagta h ........
kya usko fright pr tax bharna h .....?
or yadi bharna h to kis rate se gst dena h:::?
pls help my query......

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13 Replies

Chhatra Singh Dugar (1464 Points)
Replied 07 September 2017

Yes you are to pay GST on RCM basis if transporter is GTA. Rate is 5%. you will get ITC benefit.

Piyush (Accountant) (37 Points)
Replied 07 September 2017

but igst @ 5% or cgst n sgst @ 2.5% each

Praveen Jain (Accounts Manager) (123 Points)
Replied 07 September 2017

If transporter is registered in other state then IGST @ 5% with ITC.

If transporter registered in your state then CGST @ 2.5% SGST @ 2.5% with ITC.

Prakash Chauhan (172 Points)
Replied 08 September 2017

if transporter unregistered in other state so which tax igst or cgst

prasad (EMPLOYEES) (315 Points)
Replied 08 September 2017

I CONFUSED GTA IF GTA IS REGISTERED IN GST. RCM BASIS PE KYU PAY KARANA.

WHO ARE GTA (DHL ETC)?

Chhatra Singh Dugar (1464 Points)
Replied 08 September 2017

GTA ( Goods Transport Agency ) is not required to get itself registered under GST.

Pankaj Sarkar (140 Points)
Replied 08 September 2017

In case of GTA ..Always receiver will have to deposit tax to Department....a registered GTA can pay foward charge basis if he supply to any unregistered

MOHD AFROZ (STUDENT) (1475 Points)
Replied 08 September 2017

Firm has to recover GST under RCM from GTA @ 5%, firm will get ITC.

Bhav Bhuti Sharma (Towards Professionalism ) (823 Points)
Replied 08 September 2017

GST payable at 5% on GTA service will be payable by the service receiver under RCM and the input credit will also be taken only by the service receiver.

If Service provider registered in other state than IGST @ 5%

If Service provider registered in same state than CGST and SGST @ 2.5% each...

Yog Raj (Accountant) (155 Points)
Replied 09 September 2017

But I think there is exemptin limit of Rs. 750 or 1500..... Can someone eloborate on that? Is that limit per day or pay transport bill?

Gopal Menaria (Manager - Costing) (29 Points)
Replied 09 September 2017

It depends on the place of supply of freight service. If Transporter is registered within state then CGST (2.5%) & SGST (2.5%) will be applicable otherwise IGST will be applicable at the rate of 5% (IGST) and you will be eligible to take Input tax credit on the same paid through Electronic Cash Ledger

Pankaj Sarkar (140 Points)
Replied 10 September 2017

1. goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500goods,
2. where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.

1 Like

Gopal Menaria (Manager - Costing) (29 Points)
Replied 13 September 2017

Below is NIL rate.

Services provided by a goods transport agency, by way of transport in a goods carriage of -
(a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported
in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee
does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
or
(h) defence or military equipments.