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GST on local transportation

lexbery (d) (227 Points)

12 March 2021

what is the applicability of GST when goods of a GST registered firm is transported locally by a Unregistered transporter , i.e a person who own 3 small transport vehicle, he take his freight charges by cash and does not give any bill.
1 freight amount is around 3000/-

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 12 March 2021

Goods Service by Road is under exempt service under GST except GTA , therefore Transporter may be unregistered , However he must Issue Invoice/ Bill of amount charged as fright charges , because Registered firm under GST has file GSTR3B , Wherein he has to show under exempt supply . Also bill is necessary for Audit purpose for both Firm & Transporter .

please confirm with others also .

CMA Poornima Madhava (CMA) (13097 Points)
Replied 12 March 2021

GST is payable under reverse charge in case of goods transportation agency (GTA) services. Since the transporter does not issue consignment note, he is not regarded as GTA and hence no GST is payable under RCM.