GST on freight Charges by GTA

[ROHIT GOEL]

One of our client is engaged in providing GTA services to companies on which GST has been paid by such companies under reverse charge mechanism.

Our client is taking truck services from other transporters and paying freight to such transporters but no reverse charge has been paid on such amount as input of GST is not available to the client.

Is it the correct view or we have to deposit GST on amount of freight paid...

[Sanjeev Arora]

जी सर

[SHIVKUMAR SHARMA]

Yes,Your Client has to pay GST on Freight paid to Transporter under RCM whether ITC on Freight available or not

[Sanjeev Arora]

जी सर

आपने ट्रांसपोटर्स को जो चार्जेज दिए उसपर कोई जीएसटी नहीं देना जी क्योंकि उनकी सप्लाई एक्सेम्पट है जी

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Shivakumar.

[Ganeshan Kalyani]

Sanjeev ji, kindly provide supportive ground backing your reply.

AI Summary

Reverse charge mechanism on freight: recipient liability to pay GST may arise even without available input tax credit.
Whether a recipient of GTA services must pay GST under the reverse charge mechanism when it pays freight to subcontracted transporters without available input tax credit. One advisory view asserts recipient liability under RCM exists irrespective of ITC availability where the supply is chargeable. An alternative view contends that if the transporter's supply is exempt, GST would not apply on those freight payments.