honey (student) 18 February 2020
I am a service provider. I provide the services of cargo transfer on behalf of my customers. I give my bill to customers after charging 18% gst.
But i have one problem. The truck in which cargo is transferred, that truck company gives the bill of transfer on my name after charging 5% gst.
I then give two bills to my customer one of service at 18% and other is of transport charges at 5%
is this correct?
if not tell me the correct treatment
Pankaj Rawat (GST Practitioner) 18 February 2020
As your query sounds that you are not a GTA . You are arranging transportation services to your customer.
Now , if You are charging only commission amount for the services being provided to your customer , then yes it's 18% GST on the same & bill for transportation goods by road is Exempted Under Notification 12/2017 CT (r) (But you are exclusively using vehicle for only single consignee under contract hence not Exempted)
The truck owner who is raising bill to you is GTA ,then you are liable to do RCM on the same.
In term of Section 15 (2)(b) "any amount charged for anything done by the supplier in respect to supply services is taxable"
So It's recommended that you shall raise single bill for Hiring Charges ( commission + transportation charges) & need to charge 18% on the whole bill. (Refer Notification 11/2017 CT r , entry no. 10)