Article clears Confusion related to Exemption from GST in following two circumstances-
-Goods, where consideration charged for the transportation of goods ON A CONSIGNMENT TRANSPORTED IN A SINGLE CARRIAGE does not exceed Rs.1500/-
-Goods, where consideration charged for transportation of ALL SUCH GOODS FOR A SINGLE CONSIGNEE does not exceed Rs.750/-
Extract of Notification No. 12/2017- Central Tax (Rate) Dated 28th June, 2017
Sr. No. |
Chapter, Section, Heading, Group or Service Code (Tariff) | Description of Services | GST Rate
(%) |
Condition |
21 | Heading 9965 or Heading 9967 | Services provided by a goods transport agency, by way of transport in a goods carriage of – | ||
> Goods, where consideration charged for the transportation of goods ON A CONSIGNMENT TRANSPORTED IN A SINGLE CARRIAGE does not exceed Rs.1500/- |
NIL |
NIL |
||
> Goods, where consideration charged for transportation of ALL SUCH GOODS FOR A SINGLE CONSIGNEE does not exceed Rs.750/- |
NIL |
NIL |
> The first situation is where consignments are transported in a single carriage and the total freight for the single carriage (multiple consignment notes or multiple consignee in a single carriage) does not exceed Rs. 1500/- in total. In such case there is exemption from GST.
Examples
1. A company receives goods from a GTA in a truck. No other goods are loaded in that truck. The company pays freight of Rs. 1500/- to GTA. No GST is payable by any person on this consignment as it is exempted under first category.
2. A company receives goods from a GTA in a truck. Some other goods not belonging to the company are also loaded in the truck. The company pays freight of Rs. 800/- to GTA. The freight of other goods is Rs. 500/-. GST is not payable by the company on this consignment as the total freight for the truck is Rs. 1300 (not exceed 1500) so it is exempted.
3. A company receives goods from a GTA in a truck. Some other goods not belonging to the company are also loaded in the truck. The company pays freight of Rs. 800/- to GTA and freight of other goods is Rs. 900/-; then the total freight for the truck is Rs. 1700 (exceed 1500). Freight paid by company is Rs. 800 (>750). So, exemption is not available and the company should pay GST on Rs. 800/-.
4. The problem arises only when the gross amount charged on the consignments in a goods carriage is less than Rs.1500/-, particularly when single consignee’s charges are more than Rs.750/-. Hence in a specific case where single consignee’s charges are more than Rs.750/- and the gross charges including all other consignments are less than Rs.1500/- , consignee has to ask the transporter to indicate the same in the bill.
> The Second situation covers an “individual consignment” transported by a GTA for a particular single consignee. In such a situation if the gross amount charged for transport of these goods is Rs. 750/- or less; then that consignment will be exempted from GST. The limit of Rs. 750/- is with reference to each truck load carrier for a particular consignee.
Examples
1. A company receives goods from a GTA in a truck. The company pays freight of Rs. 700/- to GTA. No GST is payable by any person on this consignment as the value of consignment is less than Rs.750/- it is exempted under second category.
2. If suppose, two consignment note is issued by one GTA for single consignee; one is Rs.450/- and other consignment note is Rs.500/- for transportation in single carriage then in our specific view exemption is not available under second category.
ILLUSTRATIONS
Sr. No. |
Case Study | Single Consignment Amount (Rs.) | Taxability |
Category |
1. | Single Consignee & Single Carriage |
600/- |
No GST | Second |
1200/- |
No GST |
First |
||
1800/- | GST |
– |
||
2. | Single/Multiple Consignee & Single Carriage (Total Single Carriage Exceed Rs.1500/-) |
600/- |
No GST |
Second |
1200/- |
GST |
No First |
||
1800/- |
GST |
– |
||
3. | Single/Multiple Consignee & Single Carriage (Total Single Carriage does not exceed Rs.1500/-) |
600/- |
No GST |
Second |
1200/- |
No GST |
First |
||
1800/- |
GST |
– |
Scope of Exemption to G T A Service-Rs.750/- Per consignee and Rs.1500/-per consignment
(mad)-CCE vs. Suibramania Siva coop sugar Mills Ltd. (2014)52 taxmann.com 339
FACTS:
HELD:
Explaining the scope of exemption, the High Court held that as is evident from the reading of the explanation, individual consignment covered in sub-clause (2) of the said exemption means all goods transported by goods transport agency for “a consignee“
In contradistinction to this, fixing of exemption limit of Rs.1500/- under sub clause (1) is not limited to the consignment to the individual consignee but it refers to consignments relatable to more than one consignee.
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DISCLAIMER
if i paid transporter payment in different different bills total amount of bills rs 30000/- it is applicable for tds deduction.
Whether the per day limit of 5000 is also applicable to RCM of GTA ?
detailed analysis , very good article . thank you for sharing .
Good analysis.