Tempo charges with no LR would be covered by RCM under GST?

[Amit Gupta]

Advice Applicability of RCM when goods are dispatched through Tempo services & there is no LR/GR issued to us. Eway bills are generated & goods are supplied within NCT of Delhi.

Tempo charges range from ₹ 350 to ₹ 2200/- but there is no LR.

Question is : Are these cartage expenses would be covered by RCM under GST?

[Ganeshan Kalyani]

Sir, tax is applicable.

[SHARAD ANADA]

As per Notification 12/2017 CGST (rate)

Heading 9965

Services by way of transportation of goods-

(a) by road except the services of-

(i) a goods transportation agency; (GTA)

(ii) a courier agency;

(b) by inland waterways

is Nil rated supply

As per Notification 11/2017 CGST (rate) explanation is given for GTA as under

Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.]

In your case if tempo owner is not liable to issue consignment Note than he is Not GTA and his supply is Nil Rated and RCM is not applicable

[KASTURI SETHI]

It is worthwhile to go through the decision of AAR, Uttarakhand in respect of Uttarakhand Forest Development Corporation reported as 2020(38)GSTL.269 (AAR.-GST-UK) = 2020 (6) TMI 520 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND. Non-issuance of consignment note (by whatever name called) cannot become springboard or alibi for not paying GST. The applicability of GST varies from case to case depending upon facts and circumstances of each.

The above decision can serve as yardstick to ascertain taxability.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's view. The nature of service is prime factor to determine if it is a GTA.

[YAGAY andSUN]

Single Truck and non issuance of LR/GR, are no more criterion for not charging Tax (RCM/Forward) as the case may be under the provisions of GST Laws.

AI Summary

Reverse charge applicability for tempo transport depends on GTA status, not solely on LR/consignment note absence. Whether tempo cartage charges without a LR/GR fall under reverse charge depends on whether the transporter qualifies as a goods transport agency. Notifications treat road transport as Nil-rated except when supplied by a GTA, defined by issuance of a consignment note; one view treats non issuance as indicating non GTA (no RCM), while AAR guidance and other responses stress that absence of a consignment note alone does not determine taxability and the factual nature of the service controls.