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Transport intermediary gst liability

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kumar

student

248 Points Posted on 04 May 2020

Hello ,

my friend is engaged in transportation business he is an intermediary (hire vehicle from one person and provide the same to his service receipent) and a registered dealer under gst.
he is charging 5% gst from his recipients/clients and paying the same 5% to his vehicle supplier

now my questions are
1.is he following correct procedure by collecting 5% ?(a registered GTA )
he wants to claim itc as well
2. how much tax should he collect 5%or 12% ?

Replies (2)

Quick Summary

This discussion addresses GST liability for transport intermediaries who hire vehicles and provide them to clients. The core question is whether to charge 5% or 12% GST, particularly when the intermediary is a registered Goods Transport Agency (GTA) and wishes to claim Input Tax Credit (ITC). The advice suggests that charging 12% GST is appropriate if the intermediary wants to claim ITC.