Menu
GST on reimbursement of loading/unloading charges
If we pay loading charges to loader s... But after wards we recover the amount from any other party then gst will be applicable on recovered amount?? For eg we paid rs 1000 for loading 1000 kg goods... Afterwards we recover 1500 from transporter..so net in
Replies (1)
| Yes, GST is applicable. Here is the analysis: 1. Nature of Transaction: When you recover Rs. 1,500 from the transporter for loading charges arranged by you, it is a 'supply of service' (facilitating loading/unloading) to the transporter. This is taxable under GST. 2. GST Rate: Loading/unloading charges fall under SAC 9967 (Supporting services in transport — cargo handling). GST rate is 18%. 3. Value of Supply: The value is Rs. 1,500 (the amount actually recovered, not Rs. 1,000 which was your cost). The Rs. 500 difference (profit/margin) is also part of the taxable value. 4. Pure Agent Exception: If you can demonstrate that you acted as a 'pure agent' — i.e., you paid Rs. 1,000 to loaders exactly on behalf of the transporter and only recovered exact cost of Rs. 1,000 — then that Rs. 1,000 can be excluded from GST value under Rule 33 of CGST Rules. But since you are recovering Rs. 1,500 (more than your cost), you are NOT a pure agent — GST applies on full Rs. 1,500. 5. Practical Action: Issue a proper GST invoice to the transporter for Rs. 1,500 + 18% GST. Your cost of Rs. 1,000 paid to loaders — check if GST was paid and if ITC can be availed. |
Recent Topics :
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
- Query regarding exemption under Section 10(10AA) &
- NPO registered under sec 8 itr filing
- Form 144 (Earlier 27Q) – Reason Code (A/C/G/
- Nps taxation
- Representative assessee
Related Topics :
CAclubindia
