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GTA and truck owner liability

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CA NAMRATA KAYARWAR

186 Points Posted on 09 June 2023

A truck owner provides some of his trucks to GTA and receives freight charges from him and some of his trucks used by him for transportation of goods by issuing consignment note by him.

In my opinion

In 1st case truck owner is not liable to pay tax considering entry no 22 of exemption list.

In 2nd case he pays tax on FCM basis using ITC. and whether the option is available for him to issue rcm invoices.

whether it is correct treatment? truck owner can use both ways for computing gst liability.

Replies (2)

Quick Summary

This discussion clarifies GST liability for truck owners engaging with a GTA. If a truck owner provides trucks and receives freight charges, it's generally exempt under Entry No. 22 of the exemption list. However, if the owner uses their trucks for transportation and issues consignment notes, they can opt for Forward Charge Mechanism (FCM) and pay GST accordingly. Once FCM is chosen, issuing Reverse Charge Mechanism (RCM) invoices is not permissible.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 10 June 2023

As per your Query Truck owner is GTA (Issuing Cosignment Note)
So yes in First case it's Exempted supply (Notification 12/2017 CT rate)

No once he has opted for FCM he cannot issue invoices under RCM.