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

Debate on GST for Transport Services: Composite Supply Tax vs. No Tax for Non-GTA Businesses without Consignment Notes. A discussion forum participant inquired about the Goods and Services Tax (GST) implications for a business providing transportation services from ports to business premises, subcontracting to Goods Transport Agencies (GTA) or truck owners. The business does not issue consignment notes. One respondent suggested that GST should be charged according to the main supply as a composite supply, with tax rates depending on whether the goods are taxable or exempt. Another respondent stated that since the business is not a GTA, it should not be liable for any tax.