I have hired a GTA for Rs. 1200
Is this amount exempted from gst since it is below 1500...or will it be taxable since single consignment is over Rs.750?
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GTA exemption
Replies (3)
If what you hired is a local transport vehicle, there is no GST and it will not fall under GTA. GTA is a party which issues a Consignment note.
If you actually hired a GTA and still the hiring charges for the entire vehicle are Rs. 1200/- (below 1500/-), then no GST, but this scenario is very unlikely.
If what you are hiring is their service to send your a small consignment outstation in their (big) vehicle and the charges are above 750/-, and if you are the one making payment for the service (not the consignee), then you would need to pay 5% on RCM. If consignee is making the payment, consignee has to pay GST on RCM basis (assuming consignee is registered).
No need to pay tax under rcm basis if it's single consignment...
You are not required to pay GST under Reverse Charge Mechanism for hiring the service of a GTA since your consignment value is less than Rs.1,500. It is exempted vide Notification No. 12/2017, CT ( RATE ) dated 28.06.2018.
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