Transportation Contract with person registered under GST but not GTA

[GIRISH PANJWANI]

My Query is as under

1. ABC PVT LTD is sender of goods (Pune based), he sell goods in whole Maharashtra and Goa

2. Company enters contract with the registers person for shipping of Goods to different locations, This person is Not GST, he provides service of transportation of Goods from ABC PVT LTD premise to the place of transporter.

3. Company pays contractor full transportation charges including Charges charged by GTA

4. GTA issue Lorry Receipt in name of ABC PVT LTD as consignor and Customer as Consignee but goods are handed to contractor and contractor has given the goods to GTA

Question

1. What should be constrains of E way bill

2. What will be status or say service provided by the contractor and Rate of GST?

3. Payment paid to Contractor will be allowable and credit of ITC will be allowable

AI Summary

GST Implications for Transport Contractor: E-Way Bill, Input Tax Credit Eligibility, and Reverse Charge Mechanism under 18% GST A company, ABC Pvt Ltd, based in Pune, contracts a registered person for transporting goods across Maharashtra and Goa. This contractor is not a Goods Transport Agency (GTA) but facilitates transportation to the GTA, which issues a lorry receipt. Queries arise regarding the e-way bill constraints, GST rates on services provided by the contractor, and the eligibility for Input Tax Credit (ITC). Responses suggest considering a pure agent arrangement, clarifying the contractor's role, and determining the GST rate based on the service provided. The company might pay 5% GST under Reverse Charge Mechanism (RCM) if applicable, while the contractor charges 18% GST for their services.