What is the rate of GST on transportation charges?
Transport of goods by rail attracts 5% GST with input tax credit allowed on input services. Services of goods transport agency (GTA) related to the transportation of goods and shipping of used household goods for personal use attract 5% GST with no input tax credit allowed.
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
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
Please clarify whether a GTA providing service in relation to transportation of goods by road under reverse charge mechanism (RCM) can avail of the benefit of this exemption. Answer: Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.
What is the limit of RCM on transportation?
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. 5,000 from all suppliers and not per supplier. Notification No.
GST will have to be paid by the service recipient based on reverse charge in the event of the listed persons in the following table when GTA performs the freight service. 3.11-Nov-2021
How do I add transport charges to GST invoice?
How To Add Transport Charges in GST Invoice TallyPrime
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 there GST on public transport fares?
Fares current as of 01/04/17 – All fares include GST. To find more information about Opal card types, fares, where to get Opal cards, top up, eligibility and concessions, please visit https://transportnsw.info/tickets-opal/opal-cards-fares.
ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver). However, ITC is available if the seating capacity of such motor vehicles exceeds 13 persons. Further, ITC is not available on vessels and aircrafts.21-Oct-2021
Is RCM applicable on Courier services?
However, in case of courier service, provision of reverse charge is not applicable; supplier of service is required to charge tax from recipient under forward charge.
Registration Rules Under RCM Section 24 of the CGST Act, 2017 states that a person liable to pay GST under the reverse charge mechanism have to compulsorily register under GST. The threshold limits of Rs. 20 lakh or Rs. 40 lakh, as the case may be, will not apply to them.22-Jul-2022
What if RCM is not paid?
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
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).
How is GST calculated on courier services?
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
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.
How do I make a transport Invoice?
How to Create a Trucking Invoice
8. Can we claim ITC on RCM in same month? Yes, you can claim the Input Tax Credit on RCM in the same month, when you paid the GST under RCM.
Is RCM exempt supply?
No, RCM is payable at the rate chargeable on a particular supply. If the relevant supply is exempted then RCM will also be exempted.
Main GST-free products and services
What is exempt from GST?
There are really only two circumstances where customers are exempt from paying GST. The first is if it falls under the basic exemptions such as basic food, sales at duty-free and some medicines for example. The other circumstance is when a business is small enough that they don't have to register for GST credits.20-Nov-2018
What is the rate of GST on transportation charges?