TaxTMI 
TaxTMI 
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?
GST on Goods Transport
06 Feb 2025 
2 Replies 
1108 Views Asked by
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. (AI Summary)
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. (AI Summary)