GST on Tempo used for Transport

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I am Distributor of various companies. I have made a Yearly Contract with Tempo Owner under which I am provided a tempo by tempo owner and I pay for tempo related Diesel, Driver & tempo repair under this contract for for using it for Transport of my goods which are sold by me.

Under this contract, I make a Lumpsum yearly payment to Tempo provider on 31st of March each year after deducting TDS as Contractor. I use tempo for transport of my goods to various dealers.Tempo goes each day with proper invoices raised on dealers.

Tempo provider is NOT registered under GST. Since there is a contract with tempo owner as above, Goods Consignment notes are NOT generated.

Will his contract attract GST under RCM ? If yes then what % of GST ? and whether I can take Input credit if GST is payable

 

Replies (3)

The service will be covered under renting of Motor Vehicle.

W.e.f. 1-Oct-2019, vide Notification No. 22/2019 of CGST (Rates), this type of service is inserted under Sl. No. 15 and it attracts reverse charge u/s 9(3), if the same is provided to a "body corporate" (i.e. a company or an LLP).

One more condition for applicability of reverse charge in above case is that the supplier of motor vehicle on rental basis should NOT be a "body corporate".

So, if the supplier is also a "body corporate", then it will NOT attract reverse charge.

No RCM is not applicable.

If tempo service provider do not issue bilty (GR) that means he is not a GTA , hence the service provided by tempo owner is exempted in term of Notification 12/2017 CT (r)

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