GST On transport services

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.