We have a person who books our parcels for delivery to our customers, goods are transported through Indian Railway, this person (supplier of service) books a Rail coach on lease, collects all parcels from his parties and sends them through the leased coach. We receive invoice for transportation charges from this person (he is a registered suppler under GST).
Though we have transported goods through him after 01-July-2017, we have not yet received service invoices under GST, reason being his confusion on the rate of GST to be levied. We will pay him after receipt of service invoices.
I found below two entry in CBEC's service rate booklet:-
| Sl No | Service Descriptttion | GST Rate |
| 3 | Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use] | 5% No ITC |
| 14 | Transport of goods in containers by rail by any person other than Indian Railways | 12% with Full ITC |
not sure which one is applicable to him.
Also in item no. 14 above, "by any person" means receipient of service or supplier of service?
I am trying to determine the following:-
Q1. If he needs to levy GST, what is the correct rate, 5% or 12%?
Q2. In 5% it mentions NO ITC, is this applicabie to the receipient of service or the supplier of service.
Q3. Though he is registered under GST, can he still bill us without GST and we pay 5% /12% GST under RCM and then claim ITC?
Q4. if yest to Q3, What will be the rate for RCm and if ITC available on 5% under RCM?
Please help.
Thanks for your time
Narendra
CAclubindia
