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TRANSPORTER PROBLEM

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sona1

MANAGER

281 Points Posted on 28 September 2021

Our Company delivered Product to party by UNREGISTER(GST) TRANSPORTER always & for this Purpose we are paid by cheque Unregister Transporter Approximate Rs. 8.50 Lac p.a (F.y. 2021-22) without charge GST because Govt suspended RCM & We pass this delivery charge entry in accounts through voucher and show details in our TDS return

Now Our Question is any GST Related problem will arise in future about this because transaction value is high?

Replies (2)

Quick Summary

This discussion addresses concerns about GST implications when using unregistered transporters for product delivery. While the general service of road transportation is exempt from GST, specific rules apply to Goods Transport Agencies (GTAs). The user is seeking clarification on potential future GST problems given the significant annual transaction value with unregistered transporters, despite the current suspension of Reverse Charge Mechanism (RCM).

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 28 September 2021

the service of transportation of goods by road continues to be exempt even under the GST regime. GST is applicable only on goods transport agencies, GTA.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 28 September 2021

Thus, it is to be seen that mere transportation of goods by road, unless it is a service rendered by a goods transportation agency, is exempt from GST. ... Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no. 12/2017-Central Tax (Rate) dated 28.06. 2017.