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

Reverse Charge Mechanism applies to GST on transport services when GTA payment option affects liability and intermediary fees are taxable
GST liability for freight coordination distinguishes GTA transport services and liaison/intermediary services. If a registered GTA elects the Forward Charge option and gives the required intimation, the GTA will charge GST under forward charge and claim input tax credit, removing any reverse charge obligation on consignor or consignee. Liaison services provided by the coordinator are taxable as intermediary services and should be invoiced separately; maintaining separate invoices for transport and liaison is legally permissible.