GST under RCM for transporting goods from UR persons

[SAFETAB LIFESCIENCE]

Dear Experts,

We are transporting goods taken delivery from city Lorry Offices/godowns to our factory and paying local freights about ₹ 300/- or ₹ 400/- by cash, to the tempo/van walas who are not registered under GST.

Whether this type of van charges are GST taxable under RCM. Is there any exemption for this based on/by under ceiling per day expenses of ₹ 5,000/- like that ???

Please note the GST on the freight for the goods transported from the suppliers place such as Maharastra, Gujarat etc. to our place but upto the transporters godown is paid.

[Alkesh Jani]

Sir,

In this regards, please refer Notification No.12/2017-CT (Rates) dated 28.06.2017, as amended from time to time Sl.No. 21, (b) and (c), which is applicable in your case.

Thanks

[SHIVKUMAR SHARMA]

Yes, Exemption is Available under reverse charge .Transportation Charges less than ₹ 1500/- for Single Consignment for single Customer in a Vehicle & Less than ₹ 750/- for multiple Consignment for Different Customers in a vehicle.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.

[Ganeshan Kalyani]

GST is not payable in your case.

AI Summary

Reverse charge mechanism for freight: exemption where transport charges per consignment fall below prescribed small value thresholds. Reverse charge applies to freight from unregistered transporters unless the service qualifies for a small value exemption; low value local transport charges paid to unregistered tempo/van operators are not subject to reverse charge where they fall below prescribed per consignment or per vehicle small value thresholds and meet single or multiple consignment conditions.