GST on Transportation charges

[KUMAR Narasimhan]

Dear Sir / Madam

1) RCM to be paid by a registered person if GTA provide service to him

2) RCM to be paid by a registered person if URD GTA provide service more than ₹ 1500 to him.

3) If a registered person receives services from a local transporter who does not provide consignment note, is it subject to RCM? Freight cost is ₹ 55000/-

Please clarify

AI Summary

Forum Explores GST on Transportation: Reverse Charge Mechanism and Consignment Note Essentials for Goods Transport Agency Services A discussion forum addresses the applicability of Goods and Services Tax (GST) on transportation charges, focusing on the Reverse Charge Mechanism (RCM) for Goods Transport Agency (GTA) services. The forum clarifies that a consignment note is essential for a transporter to qualify as a GTA under GST laws. If no consignment note is issued, the service is exempt from GST. Participants debate the place of supply for GST purposes, with differing views on whether it should be intra-state or inter-state. The consensus is that only services by registered GTAs are subject to GST, while local transporters without consignment notes are exempt.