Gst On Freight

[Ashish Thakkar]

Dear sir

if i am a truck owner and send my commercial vehichle to transporter for Loading X party material to Deliver Y party and a LR copy is provided by Transporter then why the truck owner has to pay Gst on Freight?

[KASTURI SETHI]

Suppose truck owner is A. Transporter is B. Consignor is X and Consignee is Y. Hiring of truck by B from A is exempted vide Notification No.12/17-CT(R) dated 28.6.17 as amended from time to time.(Serial No.22).

GST on freight will be paid by any of three : B (under FCM) or X or Y.

[Ganeshan Kalyani]

Truck owner is exempted from GST for giving vehicle for transportation of goods.

AI Summary

Vehicle-hire exemption: truck owners supplying vehicles are not liable for GST; freight tax may fall on transporter, consignor or consignee.
The supply of a truck by its owner to a transporter for hiring is exempt under the cited notification, so the truck owner is not liable to pay GST for providing the vehicle for transportation of goods. GST on freight is payable by the transporter under the forward charge mechanism or by the consignor or consignee as the taxable payer of the carriage service.