Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Regarding applicability on transport services

199 views

Save Share

Join Us Follow Us Add as Source

Abhishek Sharma

62 Points Posted on 05 January 2021

I have 8 trucks and I also registered in GST, so my service is exempted under gst

Replies (3)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicability for transport services, specifically for businesses with multiple trucks. Generally, transport services are exempt from GST. However, if you are providing Goods Transport Agency (GTA) services, GST is applicable on a Reverse Charge Mechanism (RCM) basis, where the recipient pays 5% GST. If you only offer GTA services, they are exempt, with the recipient handling the RCM. You can opt to charge a higher GST rate and claim Input Tax Credit (ITC) if desired.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 05 January 2021

In case if you are in GTA then gst is applicable in rcm basis otherwise your service is exempt

Spurto Consultancy Services

Consultant

1891 Points Posted on 05 January 2021

If your only providing GTA services then yes your services are exempted. Th recipient will pay GST @ 5% under RCM. But if you want then you can charge higher rate of GST and also take ITC on your inputs.