Is transportation of goods by road exempt from GST?
All Transport services by road are exempt from GST except services from GTA and Courier agency. Anyone who provides consignment note for goods delivery will be treated as GTA. Mere Bill is not a consignment note. 5% GST rate is applicable for transportation service by GTA on RCM basis means GST is payable by recipient.16-Jul-2021
Freight charges essentially mean a charge that is paid for transportation or carriage of goods. Such GST on transportation charges can be undertaken by way of land, air, or sea. GST rate on freight charges, as indicated above, are – (1) 5% (without input tax credit), (2) 12% (with input tax credit).
Is GST compulsory for transporter?
A transporter must obtain a GST registration based on their aggregate turnover exceeding INR 20 lakhs or INR 10 lakhs for a unique category in a financial year. GTA has to pay 12% GST on all the GTA services for the financial year provided by them.16-Mar-2021
The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. For example, if the goods being supplied is charged at 18%, then you have to charge tax on transport cost also at 18%.12-Jan-2022
What is the limit of RCM on transportation?
5,000 per day. Therefore if a total purchase of less than Rs. 5,000 is made in one day from unregistered person then there is no requirement to pay tax on RCM. This limit is total of Rs.
If GTA is unregistered or does not charge GST in his invoice to the registered person, the recipient is liable to pay GST @ 5%. In other words, the person who pays or is liable to pay freight for the transportation of goods by road, will pay GST on the amount of freight paid under RCM.19-Jan-2022
What is RCM on transport?
As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is engaged in making only supplies of taxable goods/services on which Reverse Charge Mechanism (RCM) applies is exempted from obtaining registration under GST.22-Jul-2022
GST on delivery fees (not straight-forward). If delivery of goods to a customer is part of the supply to the customer, and delivery is not a separate fee, GST is charged in accordance with what is being delivered. In your case, that would mean that most (if not all) food is fresh produce and free of GST.28-Jun-2015
What is the HSN code for transport charges?
9965
Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
How do I add transport charges to GST invoice?
How To Add Transport Charges in GST Invoice TallyPrime
2.1 “As per Section 17(5) of the CGST Act, 2017, input credit can not be availed on Motor vehicles used for transportation of persons having approved seating capacity of not more than 13 persons (including the driver) including leasing, renting or hiring thereof.01-Feb-2022
How much is GST on a truck?
28% GST on cars and other vehicles is applicable in the following cases: Motor vehicles (petrol or diesel) for the transport of people including racing cars and station wagons irrespective of size*.26-Apr-2021
How to Create a Trucking Invoice
What are transportation expenses?
Key Takeaways. Transportation expenses are a subset of travel expenses that refer specifically to the cost of business transportation by car, plane, train, etc. Expenses such as fuel, parking fees, lodging, meals, and telephone charges incurred by employees can be claimed as transportation expenses.
The person cannot take the plea that there is no revenue loss if he had not paid the RCM liability because if he pays RCM liability then the same time, he will avail input tax credit.31-Aug-2020
Where is RCM applicable GST?
The registered buyer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. In intra-state purchases, CGST and SGST have to be paid under reverse charge mechanism (RCM) by the purchaser.22-Jul-2022
Registration: A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states except J & K) is not applicable to them.
Is TDS applicable on transportation charges?
What is TDS on Transportation (Freight)? According to Section 194C, any payment made to a transporter is subject to TDS deduction on freight charges. The payer must reduce the income tax amount before transferring the fee.
To issue an E-way bill, it is mandatory to mention the transport document number in Part A8, without mentioning the same, e-way bill cannot be issued therefore it is mandatory for GTA to issue the transport document and without issuing LR/ GR/consignment note, goods cannot be transported.
Is RCM applicable on goods?
Current Situation in Reverse Charge Mechanism (RCM) In the present scenario, the reverse charge mechanism is applicable in service tax for services like Insurance Agent, Manpower Supply, Goods Transport Agency, etc. Unlike Service Tax, there is no concept of partial reverse charge.27-Jul-2022
Is transportation of goods by road exempt from GST?