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GST On transport services

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STS Transport

21 Points Posted on 17 November 2024

Hello sir, Am a GST registered transporter, when am providing transport services to the consignee, I will provide the service invoice with 5% gst in RCM basis, hence they are recipient of services they will pay the gst and take the input. And they will make the payment to me for the services provided. In some cases am hiring truck from another registered transporter, and I will provide the invoice the consignee and they will pay the gst in RCM basis. While am paying to the transporter will they make RCM invoice to me ? Do I need to pay the RCM for the same service ? Pls clarify, thank you.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 17 November 2024

As a GST-registered transporter, you are providing transportation services to consignees and charging 5% GST under the Reverse Charge Mechanism (RCM).

The consignee is the recipient of services and pays the GST, taking input credit.

When you hire a truck from another registered transporter, you will receive a tax invoice from them.

In this case: - The transporter will charge you GST at the applicable rate (5% under RCM). -

You will pay the GST amount to the transporter. - Since you are already paying GST on the same service to the consignee, you will not need to pay RCM again. -

You can claim input credit for the GST paid to the transporter.

However, it's important to note that: -

The transporter should issue a tax invoice to you, showing the GST amount. - You should ensure that the transporter is registered under GST and has a valid GSTIN. -

You should claim input credit for the GST paid to the transporter within the stipulated time frame.