Gst - Boon Or Burden For Gta Via Road?

watch_later 3 years, 2 months ago

We operate a GTA via Road in Maharashtra. We need to pay Godown Rent, Commission on which GST at 18% applies but there's no ITC being GTA! Thus GST has only increased the cost/burden on GTA. Apart from above, we need to bear GST burden on all types of expenses if supply from registered dealer eg. Stationary, Tyres, Truck with no ITC... & if service is taken from unregistered dealer like Mechanic, Puncture man, Painter, etc there is burden of RCM also... There are other expenses like Office Cleaning, Vargani (Donations for festivals), Hamali to labours who are not employees... etc which also attract GST on RCM...

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1 Answer

Pulkit Sharma watch_later 3 years, 2 months ago

Sir, this is nothing but backfiring.

When service tax was made applicable on transporters there was nationwide strike for more than a month. Government being smart, introduced RCM on transporter.

Now again transporters associations should make representation to government for removing RCM. Earlier you enjoyed the exemption from service tax but same was payable by service recipient now it is working against you.

The confusion is still prevailing as to whether gst under RCM paid by service recipient at 5% can be considered for input or not.

As a GTA you will be passing on the cost of GST paid by you, big companies will avoid GTA and will start to own their own transport vehicles to avoid extra cost for which they can get credit!!!

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