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...

AI Summary

GTA Services Must Use Reverse Charge Mechanism for Freight Payments, Regardless of Input Tax Credit Availability A client providing Goods Transport Agency (GTA) services is paying freight charges to other transporters without applying the reverse charge mechanism (RCM) for GST, as they cannot claim input GST. A participant, Shivkumar Sharma, clarified that the client must pay GST on freight under RCM, regardless of input tax credit availability. Dr. Mariappan Govindarajan agreed with this view. Another participant, Ganeshan Kalyani, requested further clarification from Sanjeev Arora, who had initially responded in Hindi without providing a detailed explanation. The discussion emphasizes the necessity of adhering to RCM for freight payments in GTA services.