A registered truck owners having 5-10 trucks having attached their trucks with GTA (providing logistics services to corporate and charging 12% GST) are raising tax invoices and charging GST @ 12% on transportation bill with claiming input of Vehicle and expenses. Is this correct or wrong?
Service by gta to gta
Shahnawaz Alam
Debate Over Correct GST Rate for Truck Owners: 12% or 18%? Clarification on Exemptions and Charge Mechanisms. A discussion on Goods and Services Tax (GST) involves a query about the correct GST rate for truck owners providing logistics services through a Goods Transport Agency (GTA). The initial question concerns whether charging 12% GST on transportation bills is appropriate. One response suggests an 18% GST rate may apply, while another clarifies that two services are involved: truck hiring, which is exempt, and transportation services, which are under the Forward Charge Mechanism (FCM) rather than the Reverse Charge Mechanism (RCM). A reference to a decision by the Authority for Advance Rulings (AAR) in Karnataka is also mentioned. (AI Summary)