GTA Services

[Kaustubh Karandikar]

XYZ Ltd. (Maharashtra) paying freight charges to the transporter for transporting goods from 1) Chennai to Maharashtra where the transporter is from Chennai and 2) From Pune to Mumbai where the transporter is from Pune. In both cases, XYZ need to pay GST under reverse charge and in that case XYZ need to pay CGST + SGST or IGST? In my view, this will fall under Section 12(8)(a) of IGST Act, As per this, the place of supply of services by way of transportation of goods, including by mail or courier to,'' (a) a registered person, shall be the location of such person. Accordingly, answer to 1) will be IGST and answer to 2) will be CGST + SGST. Views of the experts please.

[Rajagopalan Ranganathan]

Sir,

In the first case the transport is inter-state. Therefore IGST is payable. In the second case the transport is intra-state. Hence CGST and SGST is payable.

[Ganeshan Kalyani]

I agree with the views of Sri Rajagopalan Sir.

AI Summary

Place of supply for transportation services: recipient location determines IGST for inter-state and CGST+SGST for intra-state reverse charge. Place of supply for transportation of goods to a registered person is the recipient's location under Section 12(8)(a) IGST Act; if recipient and transporter are in different States the supply is inter-state and attracts IGST, whereas if both are in the same State the supply is intra-state and attracts CGST and SGST, including when liability arises under the reverse charge mechanism.