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Place of supply for GTA services

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Kaustubh Karandikar

2 Points Posted on 23 June 2021

XYZ Ltd. (Maharashtra) paying freight charges to the transporter for transporting goods from 1) Chennai to Maharashtra where the transporter is from Chennai and 2) From Pune to Mumbai where the transporter is from Pune. In both cases, XYZ need to pay GST under reverse charge and in that case XYZ need to pay CGST + SGST or IGST?

Replies (8)

Quick Summary

This discussion clarifies the Place of Supply (POS) rules for Goods Transport Agency (GTA) services under GST, particularly when the recipient pays under reverse charge. The POS is generally the location of the recipient if they are registered. This determines whether IGST or CGST/SGST applies, depending on the location of the recipient and the transporter.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 23 June 2021

In both cases igst since pos is Maharashtra

Ravi KUMAR

34 Points Posted on 23 June 2021

For considering tax IGST, CGST,SGST PLACE OF TRASPORTER/REGISTRATION PLACE IS IMPORTANT

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 23 June 2021

IGST will be applicable

CMA Poornima Madhava

CMA

13117 Points Posted on 23 June 2021

1) POS is Maharashtra and transporter in Chennai and hence IGST 2) POS is Maharashtra and transporter also in Maharashtra and hence CGST & SGST

CMA Poornima Madhava

CMA

13117 Points Posted on 23 June 2021

1) POS is Maharashtra and transporter in Chennai and hence IGST 2) POS is Maharashtra and transporter also in Maharashtra and hence CGST & SGST

CA Altamush Zafar

GST Consultant

15986 Points Posted on 23 June 2021

I stand corrected for the second case

Pankaj Rawat

GST Practitioner

55067 Points Posted on 03 July 2021

In term of Section 12(8) of IGST Act ,
in case by way of transportation goods , the POS will be :
Location of Recepient if he is registered else location where the goods being handed over for transportation.

Now in your case the Recipient is XYZ ltd which I assumed is registered (the person paying for transportation services)

So in first case IGST will be applicable.
& in 2nd case CGST/SGST will be applicable.