GST on GTA

[Ayub Mohammad]

A (Registered Taxpayer) entrusted B (GTA) to transport its goods by road from one place to other. B not having enough means of transport entrusted C (GTA) for transport of a part of total goods. C also used the trucks of truck owners who are not GTAs. Now B will raise an invoice on A with RCM.

1. If C will raise invoice on B with RCM?

2. If answer is Yes, GSTR 2A of B will be flooded with entries of C for tax to be paid on RCM. If B is liable to pay GST on RCM for using trucks from C

3. If C shall pay GST (RCM) for using truck owners (unregistered) for transportation?

AI Summary

Reverse charge mechanism places GST responsibility on the consignor for road freight; vehicle hiring to GTAs attracts nil rate.
Primary GST liability for road freight rests with the person liable to pay freight under the notification, typically the consignor under the reverse charge mechanism; the contracting GTA bears forward-charge liability only if consignor/consignee are not covered and the GTA elects forward charging. Hiring of vehicles to a GTA for transport is nil-rated, so vehicle owners (including unregistered owners hired by a subcontracting GTA) need not charge GST on such hiring.