GST on freight

[Murari Agrawal]

We are doing Job Work and we bring the inputs from Principal on his Challan and pay the freight to local Stand Tempo/Matador driver. Since freight is paid to non GTA, we are not paying reverse GST. Subsequently, the freight is realised from the principal by raising an Invoice. My query is whether we should charge GST on such invoice. Thanks.

[KASTURI SETHI]

Three wheeler auto, tractors, metadoor etc. are not defined for transportation of goods by road as per the definition of GTA and as per Exemption notification no.12/17- Central Tax (Rate) dated 28.6.17.

AI Summary

Goods Transport Agency classification affects GST on freight; three wheelers and similar transports fall outside GTA and are exempt. Vehicles such as three wheelers, tractors and small passenger autos used for carriage are not covered by the statutory definition of Goods Transport Agency and, under the cited exemption notification, such transport is treated as exempt from GST; carriage by these excluded vehicles therefore does not attract the GTA reverse charge and recovered freight invoiced to the principal must be considered in light of that exemption.