Foreign company

[Rajagopalan Sundaram]

GTA provides services of transportation in India to a foreign company

My questions are

1) what is the rate of gst to be charged . Pls confirm my understanding it is IGST.As foreign company has no GSTiN , how do GTA proceed in this regard.

2) Trucks for the above job were hired from URD transporter, hence rcm is payable by GTA which is 5 % . Can GTA take ITC for the same

Thank you

[KASTURI SETHI]

Reply to Query No.1 : Transported goods are to be consumed in India. You are covered under Section 12(8)(b) of IGST ACT, 2017. Under Forward Charge Mechanism rate is 12% (6% + 6%).. You can take ITC if you pay 12%. You will have to opt for working under FCM in the beginning of Financial Year.

Reply to Query No.2 (Hiring Vehicle is exempted as per Notification given below:-

Notification No.12/17-Central Tax(Rate) dated 28.6.17

22	Heading 9966 or Heading 9973	Services by way of giving on hire - (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or	Rate Nil	Condition Nil
		(b) to a goods transport agency, a means of transportation of goods.	NIL for (b) also

[Ganeshan Kalyani]

The Service of giving on hire of vehicle to goods transport agency is exempted.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

[Rajagopalan Sundaram]

Dear Mr Sethi

Thank you very much.

As regards query no 1-. GTA has been charging on RCM and for FCM we hv to wait till next FY. In this case since GTA has already performed the services what will be the rate .

AI Summary

GST for Goods Transport Agencies: 12% Rate, ITC Claimable, Exemption for Unregistered Transporters Under Specific Conditions A discussion on a forum addressed the Goods and Services Tax (GST) implications for a Goods Transport Agency (GTA) providing services to a foreign company in India. The main queries were about the applicable GST rate and the procedure when the foreign company lacks a GST Identification Number (GSTIN). Responses clarified that the applicable GST rate under the Forward Charge Mechanism (FCM) is 12%, and Input Tax Credit (ITC) can be claimed if this rate is paid. Additionally, hiring vehicles from an unregistered transporter is exempt from GST under specific conditions, per a notification.