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GST on local transportation

lexbery (d) (221 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/-


 2 Replies

prasad Nilugal (Sr . Accountant and GST Practitioner . )   (6986 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) (12987 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.

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