Whether IGST or CGST/SGST to be paid on GTA services?

Confusion of Charging CGST/SGST or IGST?

Section 12 of IGST Act states that the Place of Supply for services by way of transportation of goods, including by mail or courier would be as follows:

Recipient	Place of Supply
Registered Person	Location of Registered Recipient
Unregistered Person	Location where such goods are handed over for the transportation

 

In simple terms, if the place of business of Transporter is different from your place of business (i.e. different state or out of India), charge IGST otherwise charge CGST and SGST.

Few examples:

Example 1- ThinkDigits Consultants are registered in UP hires ABC Carriers, a goods transportation company based in UP for the transportation of goods.

Charge CGST+ SGST (intra-state)

 

Example 2- ThinkDigits Consultants registered in UP hires ABC Carriers, a goods transportation company based in Mumbai for the transportation of goods.

Charge: IGST (inter-state)

 

Example 3: A registered person M/s ThinkDigits Consultants in UP, India during the export of goods to Bangladesh has entered into a contract with a GTA located in India to transport goods by road.

 

Charge: IGST (inter-state)

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