LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

GST on Transport Bill

Manjunath S (Asst. Officer - Indirect Taxes) (115 Points)

15 March 2018

Dear experts,

we are registered manufacturers in Karnataka, and we are purchasing materials from Gokak (karnataka), supplier is charging CGST and SGST.

but transporter is registered in Maharashtra, and he has given his lorry receipt and bill for his freight charges, and registered address is Maharastra.

my query is,

1) whether we have to pay CGST & SGST or IGST on freight charges under RCM?

2) whether 5% or 12% GST payable on freight charges under RCM ?

thanks in advance.

Reply
Follow
Share

17 Replies

Aashish Sachdeva (839 Points)
Replied 15 March 2018

As per my personal opinion, Transporter cant issue bilty from Maharashtra....
You have to pay IGST deemed as unregister dealer....
Rate is 5% ..

Its my personal opinion, if anybody have different view then views are welcome. thanks. Disclaimer: Its not Professional Advice.....

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 15 March 2018

Yes , GTA can charge IGST.
And as per Notification 22 central (rate) GTA service provider to avail full ITC has to discharge 12 gst.
so if the GTA charge 12% , then no RCM is done , if he charge 5 % then RCM has to be done.

Manjunath S (Asst. Officer - Indirect Taxes) (115 Points)
Replied 15 March 2018

thanks for your reply,

But GTA is not charging any tax in his bill, we have to pay GST under RCM.

How can we know that GTA is availing input or not.

RAJA P M ("Do the Right Thing...!!!") (127053 Points)
Replied 16 March 2018

Yeah... GTA can charge GST. But, here question is recipients view...

Dear Mr. Manjunath S...

Here no need any doubts. You can pay CGST and SGST for the RCM. bcoz, Place of supply of services is "Intra State". So, Pay CGST and SGST...

1 Like

Manjunath S (Asst. Officer - Indirect Taxes) (115 Points)
Replied 16 March 2018

thank you sir

Nitesh kumar (Officer- Indirect Taxation) (31 Points)
Replied 16 March 2018

As transporter has not charged GST so service recipient has to pay GST on the RCM basis as assumed that recipient of the service is a registered party. Further to say that as the transporter, as said in the query, is registered in other state and supplying service in some other state so definitely recepient of service has to pay IGST.

Aashish Sachdeva (839 Points)
Replied 16 March 2018

i agree with nitesh kumar

Manjunath S (Asst. Officer - Indirect Taxes) (115 Points)
Replied 16 March 2018

fine, my 2nd questions is unanswered, kindly clarify.

Aashish Sachdeva (839 Points)
Replied 16 March 2018

Also reply just after you question.. that 5%

Manjunath S (Asst. Officer - Indirect Taxes) (115 Points)
Replied 16 March 2018

thank you very much dear all experts.

Aashish Sachdeva (839 Points)
Replied 16 March 2018

I am not expert, I study query and after that giving answer.....

RAJA P M ("Do the Right Thing...!!!") (127053 Points)
Replied 17 March 2018

The Transporter registered anywhere of the India. He received material in Karnataka and Supply in Karnataka...
Here supply is intra State. IGST not applicable. Also the transporter treated URD in Karnataka...

CA NEERAJ SHARMA (practice) (408 Points)
Replied 10 April 2018

SINCE TRANSPORTER IS REGISTER THEN WHILE FILLING HIS GSTR -1 HE WILL PROVIDE POS KARNATKA AND HE IS REGISTER IN ANY OTHER STATE. THEN EVENTULY HE WILL FILE RETURN BY SHOWING IGST IN HIS RETURN. IF YOU TREAT IT AS INTRA STATE SUPPLY THEN EVENTULY THE YOUR GSTR-2 AND GSTR-1 OF SUPPLIER WILL NEVER TALLY. SO YOU HAVE TO FILE IT INTERSTATE SUPPLY AND PAY IGST ACCORDINGLY.