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.
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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