GST on Goods Transport

[Mihir Modak]

We are providing service for transportation of goods from ports to business premises. We subcontract the work to GTA or Truck owner. The GTA is billing to us either RCM or FC bill. We are not issuing any consignment note to our customer. In this case how much GST we should charge to customer?

[VENU K]

As per valuation provisions

Sec 15

(2) The value of supply shall include:-

....

.....(c) Incidental expenses , including commission and packing, charged by the supplier to the recipient of the supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services

In my opinion as per the above clause you will have to charge tax as applicable to your main supply as a composite supply.. For example if you are supplying 5 percent goods, tax shall be 5%. If you are selling exempt goods it will also be exempt.

[Shilpi Jain]

Since you are not GTA (not issuing consignment note), you should not be liable to any tax.

AI Summary

Valuation of Supply: incidental transport charges may be included and taxed as part of the composite supply or may not attract tax if not a GTA.
Issue whether a supplier arranging subcontracted transport must charge GST. One position invokes Valuation of Supply under section 15(2)(c): include incidental expenses and charge GST on the composite supply at the rate of the principal component. An alternative position contends that, if the supplier does not issue consignment notes and is not the goods transport agency, the supplier may not be liable to tax for the transport service.