Transportation

[Yogesh Khetrapal]

A registered dealer getting inward services, and using the local transportation as freight Inward, the transporter is not a GTA as it is just a Bill/ Cash Memo issued by though the name is using Transport word. In my understanding it must fall under RCM, as goods or services are being received through an unregistered dealer.

Whether the transportation charges must fall under the ambit of composite supply?

Please consider both the points separately.

Thanks,

AI Summary

Reverse charge mechanism on local transport services not triggered where transporter does not issue a consignment note.
RCM does not apply where a local transporter issues only a bill or cash memo and not a goods consignment note, so the service is not treated as GTA service attracting reverse charge; ordinary registered recipients are not liable for RCM merely because the transporter is unregistered. Separately, transportation charges invoiced independently by a third party transporter are not a composite supply with the goods and should be treated as an independent supply.