No Reverse Charge on Transportation services:

According to section 9(3) of the Act, if a person availing transportation services from Goods transport agency then it is required  to pay GST under reverse charge mechanism. But there are certain services which are even though provided by GTA, but no GST liability will attract.

Following are the Exemptions from payment of GST on the GTA service provided in respect of following commodities & Services:

Notification No-1:

Notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (Sl.No..21): The following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax.

Services provided by a goods transport agency, by way of transport in a goods carriage of –

(a) agricultural produce;

(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;

(d) milk, salt and food grain including flour, pulses and rice;

(e) organic manure;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments.

 

 

 

Notification No -2:

Notification No.12/2017-Central Tax (Rate) dated 28.06.2017

Services by way of giving on hire –

(b) to a goods transport agency, a means of transportation of goods.

If a motorised vehicle is given on hire to a Goods Transport Agency for transportation of goods by road, no GST is payable on such transactions.

In above services of GTA, no liability of GST would be arise.