RCM ON TRANSPORT

If Priya Sudarshan were online she would have explained with relevant sections.

Services by way of transportation of goods are exempted:

(a) by road except the services of:

(i) a goods transportation agency;

(ii) a courier agency

(b) by inland waterways.

Therefore, the service of transportation of goods by road continue to be exempt even under the GST regime. GST is applicable only on goods transport agency,

Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust,