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

Goods Transport Agency status determines reverse charge liability and whether recipient must discharge GST or service is exempt.
Issuance of a consignment note is the defining requirement for classification as a Goods Transport Agency; transporters who do not issue consignment notes are treated as goods transport operators and their services are exempt from GST. If a supplier qualifies as a GTA but is unregistered or does not charge GST, the registered recipient is liable under the reverse charge mechanism to pay GST on freight and account for compliance. Parties differ on whether RCM treatment alters place-of-supply determination, affecting whether intra-state or inter-state tax heads apply.