Company U requires transportation service to obtain or bring
goods from M/s L so it gives the contract to Mr. G (Individual) to transport
the goods from M/s L to Company U. Mr. G hires different transport service
providers say A, B, C etc to provide the said service for different orders
depending upon the availability. Mr. G does not have their own vehicles/
Trucks. The payment is made by Company U to Mr. G after deducting the TDS @
1%.The total receipts from Company U to Mr. G in the year 2017-18 is 27 Lakh
Please clarify on the following issue
1) Will Mr. G be treated as GTA??
2) Is Mr. G required to obtain GST registration?? If yes When??
3) Will Mr. G require to pay GST on RCM of the Transport service
provider A, B, C etc?
4) What documents are required to be obtained from Transport
service provider A, B, C etc?
5) What will be the situation if the Transporter A, B, C is
unregistered from GST?
6) What will be the
situation if the Transporter A, B, C is registered in GST?
Please suggest a way out from which Mr. G can be best benefited.
1) As per Notification
No. 11/2017-Central Tax (Rate) dated 28th June, 2017, goods transport agency”
or GTA means any person who provides service in relation to transport of goods
by road and issues consignment note, by whatever name called. Therefore Mr. G
will be treated as GTA if it issues consignment note to the service recipient.
2) GTA does not have
to register under GST if he is exclusively transporting goods where the total
tax is required to be paid by the recipient under reverse charge basis even if
turnover exceeds Rs. 20 lakh. Thus, if Mr. G is engaged exclusively
transporting goods where RCM is applicable, registration under GST is not
3) Services by way of
giving on hire a means of transportation of goods to a goods transport agency
is exempted under GST. Therefore if you are taking transport vehicles on rent
from another GTA then it is not taxable under GST and is covered under exemption
list. As the said service is exempt under GST, whether A, B, C are registered is