GST ON FREIGHT INCOME

DEAR SIR

 

I AM IN BUSINESS OF SALE / PURCHASE OF  FUEL OIL AND REGISTERED WITH GST. NOW THE ISSUE IS THIS A APART OF MY FUEL TRADING  I PURCHASE A COMMERCIAL VEHICLE FOR OWN USE BUT  I HAVE STARTED USING MY THIS VEHICLE FOR THE TRANSPORTATION OF GOODS FOR OTHER PARTIES AND I EARN FREIGHT INCOME AND I HAVE SHOWN IN BOOKS AS FRIGHT INCOME.

MY CA SAYS THAT IT COMES UNDER GST AND YOU HAVE TO DEPOSIT THE GST ON FREIGHT INCOME.AS I AM NOT A TRANSPORTER NOR ISSUE ANY BELTY TO CUSTOMERS SO HOW THE GST IS APPLICABLE ON FREIGHT INCOME.

KINDLY RESOLVE THIS MATTER

THANKING YOU

DEAR SIR

 

I AM IN BUSINESS OF SALE / PURCHASE OF  FUEL OIL AND REGISTERED WITH GST. NOW THE ISSUE IS THIS A APART OF MY FUEL TRADING  I PURCHASE A COMMERCIAL VEHICLE FOR OWN USE BUT  I HAVE STARTED USING MY THIS VEHICLE FOR THE TRANSPORTATION OF GOODS FOR OTHER PARTIES AND I EARN FREIGHT INCOME AND I HAVE SHOWN IN BOOKS AS FRIGHT INCOME.

MY CA SAYS THAT IT COMES UNDER GST AND YOU HAVE TO DEPOSIT THE GST ON FREIGHT INCOME.AS I AM NOT A TRANSPORTER NOR ISSUE ANY BELTY TO CUSTOMERS SO HOW THE GST IS APPLICABLE ON FREIGHT INCOME.

KINDLY RESOLVE THIS MATTER

THANKING YOU

Replies (2)
Quick Summary
This discussion explores the applicability of GST on freight income earned by a fuel oil trading business. The individual is using a commercial vehicle, originally for personal use, to transport goods for third parties and is receiving freight charges. Their accountant advises that GST is applicable, even though they are not a registered transporter and don't issue delivery slips. The response clarifies that GST applies under Reverse Charge Basis if the recipient is registered, and under Forward Charge if the recipient is unregistered.

On freight charge if u collect money from registered person without GST then the receiver of the service has to pay GST under Reverse Charge Basis. But of collect money from unregistered person then u have to pay GST under forward charge.
Tax rate on freight income

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