GST implication of Transportation Service of Bulk POL Products

[Narayan Vaishnav]

I am running transportation business and having contract with HPCL & Essar Oil Ltd

total 45 tankers of different capacities are running into those contract.

I have 25 tankers in owned category and 20 tankers into attached category (attached category means owners of tankers are other person and as per mutual agreement between me and them, their vehicle(s) will be inducted into my transportation contract with HPCL anbd Essar Oil Ltd. for a period of 5 years and out of freight receipt from these companies to me, I hold a fixed percent of freight viz 2% to 5% and balance will be credited to these other vehicle owners account.

These Company are charging RCM on my freight receipts and now I want to register into GST as my turnover limit crossed ₹ 40.00 Lacs.

I want to clear whether GST on RCM basis will have to be deposit by me on freight charges paid to these attached vehicle(s) or their is any other system have to be followed.

Please advice about GST implications as these attached vehicle owners are single vehicle owner and not registered into GST and as per present freight receipt projections each vehicle will be getting almost 25 to 30 lacs of freight receipts during a complete year.

Please advice what to do and how to do. ?

AI Summary

GTA reverse charge: GST liability hinges on consignment note, registration status, or electing forward charge.
Transportation of bulk petroleum products is treated as Goods Transport Agency services typically subject to the reverse charge mechanism, with liability hinging on consignment note issuance and the registration status of vehicle owners; notified exemptions for certain hiring arrangements may apply but non issuance of consignment notes is not a guaranteed defense. A transporter may register and instead charge GST under forward charge, undertake return filings, and seek input tax credit, after examining relevant notifications and the contractual position of attached vehicle owners.