Is transportation charges taxable under GST?
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Is transportation charges taxable under GST?
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\%.
What is GST on transportation?
18\% GST is applicable to rental services of road vehicles including trucks (with or without operator) 18\% GST is applicable to rental services of freight aircraft (with/without operator) 18\% GST applicable on rental services of water vessels including freight vessels (with/without operator)
Is RCM applicable on transportation of exempted goods?
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 are exempted goods and services?
GST exemptions for goods
| Types of goods | Examples |
|---|---|
| Natural products | Honey, fresh and pasteurized milk, cheese, eggs, etc. |
| Live trees and plants | Bulbs, roots, flowers, foliage, etc. |
| Vegetables | Tomatoes, potatoes, onions, etc. |
| Fruits | Bananas, grapes, apples, etc. |
What do you mean by exempted services?
exempted services means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service tax is leviable under section 66 of the Finance Act, 1994 and taxable services whose part of value is exempted on the condition that no credit of inputs and input …
What is exempt supply?
Exempt supply is defined in section 2(47) of GST Act. (47) “Exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.
What is exempt GST?
Exempt. Supplies are taxable but do not attract GST and for which ITC cannot be claimed. Example: Fresh milk, Fresh fruits, Curd, Bread etc. Non-GST. These supplies do not come under the purview of GST law.
What is a goods transport agency?
(ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplierof service to be considered as a Goods Transport Agency.
Which services received by the GTA are exempt from central tax?
Similarly, the following services received by the GTA (Heading 9966 or 9973) is also exempt in terms of notification no.12/2017- Central Tax (Rate) dated 28.06.2017 (sr.no.22) Services by way of giving on hire : (b) to a goods transport agency, a means of transportation of goods.
Is all transport of goods by road by a GTA taxable?
The above discussion shows that not all transport of goods by road is by a GTA. To qualify as services of GTA, the GTA should be necessarily issuing a consignment note. Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
What are the services provided by a GTA under GST?
As per notification no. 20/2017, a GTA can provide services pertaining to transportation of goods including used household goods for personal use by paying effective GST of 12\% (6\% CGST and 6\% SGST).
What is the meaning of goods transport agency (GTA)?
As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.