GST on Freight Charges and Agency Invoice

[FrJOE ARUNsjDirector]

Respected Members,

Query 1: We have a business wherein we would be co ordinating with the transporter and buyer for shipment of goods, in this scenario the transporter would invoice to us and we would invoice the same amount (cost to cost) as charged by the transporter to the buyer - Please advise how to go about the GST portion, should we pay GST on RCM charged by the transporter and invoice 18% to the buyer, then the cost for the buyer would be more

Query 2: We would charge the Liaision fee for booking trucks from transporter for the buyer in this scenario are we liable to charge GST at 18%, please advise the correct treatment

Query 3: Will there be any difference if we have 2 invoices separately

Thanks in advance

AI Summary

Director Seeks Guidance on GST for Freight Charges; Liaison Fees Taxed at 18%, Consider GTA Registration for Neutral GST Costs. A business director seeks advice on handling GST for freight charges and agency invoices. They ask if GST should be paid on a reverse charge mechanism (RCM) when invoicing buyers at the same rate as transporters, and about GST on liaison fees for booking trucks. A respondent clarifies that intermediary services do not fall under RCM and explains the conditions under which RCM applies, noting that liaison fees are taxed at 18%. They suggest registering as a Goods Transport Agency (GTA) under the forward charge mechanism (FCM) to make GST costs neutral for all parties involved.