Transport Contractor Gst Query


Parthiban M
watch_later 1 year, 8 months ago

Dear Sir,

I am a transport contractor and vehicle owner Indulge in placement of own trucks and hired trucks as per client requirement. I understood 5% GST is applied on my billing to the client and shall pay 5% tax to the treasury. Inturn need a clarity on what should be done for the hired trucks from 3rd parties where i am liable to pay the freight  charges. Also need the clarity whether RCM is applicable for GTA.

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1 Answer

DDS watch_later 1 year, 8 months ago
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1. GST won't be applicable on the freight charges paid by you against the hired trucks.

2. If your client is registered under GST, you do not need to collect 5%... the client is supposed to pay the same under RCM. However, if your client is an individual or a proprietor & un-registered / not having GSTIN, you need to charge 5% GST on your Bills and collect the same from your client and pay it to Govt./treasury.

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