GST on Transport service availed from non GTA

[Guest]

X Enterprise supply us material for which he is giving us VAT invoice.& for transport of the same he prepares other invoice as X Transport. but for transport of goods he is not issuing goods consignment note & simple invoice is there mentioning Truck no. & goods details. So we confirmed from him that he sends us material from his own Truck & he is the owner of the firm. So we didn't pay service tax on transport invoice that he has sent us.

Is it correct?

now under GST, instead of VAT GST is there in his invoice & same thing with transport invoice. So now GST to be paid on transport charges?

please advise

[SHIVKUMAR SHARMA]

They are not the Goods transport agency as they are not issued Consignment note hence GST is not applicable

[Rajagopalan Ranganathan]

Madam,

The service provided will be treated as GTA only when the service provider issues consignment note. If the service provided is GTA service then gst is payable by consignor/consignee under reverse charge. Otherwise the service provider himself has to discharge liability of gst subject to prescribed threshold limit of ₹ 20 lakhs.

[Guest]

ok. so now we don't have to pay GST for transport service recd from non GTA.

thank you.

[Rajagopalan Ranganathan]

Sir,

The answer is yes.

[KASTURI SETHI]

Using own truck for transportation of goods by road is out of definition of GTA.

[Guest]

But in that case, do we have to pay GST as service taken by URD then?

[Ganeshan Kalyani]

The definition states that any person providing transportation of goods by road. Any person includes an individual.

[KASTURI SETHI]

When using own truck is not taxable, the question of paying tax on the basis of URD does not arise.

[Guest]

thank you very much for the valuable information.

[Tarun Agarwalla]

Along with the agreement of views of extremed. Exports .

My submission is

As the person is charging for transportation of goods along with supply of goods. Does this mean it can be brought under composite supply. If so the same may be taxable and valuation rule also endrose it.

AI Summary

GTA definition: transport by own truck without consignment note is not GTA, supplier must account for GST unless exempted by threshold. A transportation service without issuance of a consignment note and provided using the supplier's own truck does not constitute a Goods Transport Agency service; consequently the reverse charge mechanism for GTA services is not triggered and the transporter must account for GST on the transport service subject to registration and threshold rules. If transportation is invoiced together with the supply of goods, assess whether it is a composite supply, as composite-supply classification and valuation rules will govern taxability of the transport component.