GST ON CONVEYANCE CHARGES

[SURYAKANT MITHBAVKAR]

Whether GST is applicable on conveyance charges under RCM.

[Himansu Sekhar]

If it is a GTA, then RCM is applicable. GTA is defined.

[KASTURI SETHI]

Conveying charges is not GTA. It is like travelling allowance. Not taxable under GST. No question of RCM. However, as expense may be part of transaction value.

[subramanian vijayakumar]

Yes I agree with Sethi sir view

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

In case the conveyance expenses like auto fare expenses is claim by the employees, then RCM is applicable? If yes then what is the tax rate?

Thanks in advance.

[Vamsi Krishna]

• Auto, metered cab charges - Exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.

• Cab service procured from operator (OLA, UBER etc.,) - GST will be paid by the such operator itself. There is no liability on the service receiver. Further, the taxes paid by the operator cannot be availed as credit.

• Cab services procured from other agencies - GST will be paid by the provider itself if they are registered, if not service receiver shall pay GST on the same as a service receiver. The taxes paid is not available as credit.

• Local bus charges - Stage carriage is exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.

AI Summary

Conveyance charges under GST: applicability hinges on GTA characterisation and supplier registration status. GST on conveyance depends on supply character and supplier registration: GTA services attract reverse charge; employee travel allowances and ordinary passenger transport (including metered autos and stage carriage) are generally exempt; platform operators must discharge GST themselves and recipients cannot claim credit, while recipients may incur RCM if a provider is unregistered.