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.

AI Summary

XYZ Ltd. Must Pay IGST for Chennai-Maharashtra Freight and CGST+SGST for Pune-Mumbai Under Section 12(8)(a) IGST Act. XYZ Ltd. in Maharashtra is paying freight charges for transporting goods from Chennai to Maharashtra and from Pune to Mumbai. The question is whether XYZ should pay GST under reverse charge as CGST + SGST or IGST. Under Section 12(8)(a) of the IGST Act, the place of supply for transportation services to a registered person is their location. Experts agree that for Chennai to Maharashtra, IGST is payable as it is inter-state transport, while for Pune to Mumbai, CGST and SGST are payable since it is intra-state transport.