GST applicability on GTA

[sahil jain]

If A is a GTA who received a contract of transportation of goods from a company called C. Then A subcontracts that transaction to another GTA called B and B delivers the goods to C on behalf of A. B then bills to A and A bills to C. Reverse charge is being paid by C. whether A is liable to pay GST on reverce charge basis based on the bill raised by B to A? (point to remember- one service has been provided in whole situation i.e., transportation of good by B to C on behalf of A)

[Ganeshan Kalyani]

Refer Issue Id 115528

https://www.taxtmi.com/forum/issue?id=115528

AI Summary

Reverse charge on GTA services: whether principal contractor remains liable when subcontracted transport is supplied and billed through intermediaries. GST issue: where A (contracting GTA) subcontracts transportation to B who delivers for C, B bills A and A bills C while C pays tax under reverse charge; the question is whether A must pay GST under reverse charge based on B's bill, focusing on allocation of reverse-charge liability in subcontracted GTA arrangements.