Is gst applicable on transport if the transporter is unregistered and does not provide a LR or consignment note?
Suppose: Mr. A is a registered dealer based in Gujarat and Mr. B is a registered dealer based in Maharashtra. Mr. B sends goods to Mr. A via a transporter. The transporter is an unregistered tranporter without any consignment note or LR etc. The transport charges will be paid by Mr. A. In this case should Mr. A pay gst on RCM basis on the transportation paid?
Short answer: GTA reverse charge would not apply if no consignment note is issued. The GST Council's GTA flyer says a transporter who does not issue a consignment note does not come within the meaning of a goods transport agency. Also, GTA RCM applies only to specified recipients (registered persons, factories, societies etc.), so the exact treatment depends on the facts. Ask the transporter for a proper invoice, and check the current GTA notification before deciding. General information, not advice.
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