Question22: I am registered dealer, I
have to pay of Rs. 2500/- to unregistered transporter whether I should deposit
reverse charges or what is the treatment under GST
Answer We assumed that unregistered transporter is Goods transport agency
and issues consignment note.
In this case Vide S. no. 1 of Notification No. 13/2017- Central Tax (Rate),
Registered recipient shall pay tax under reverse charge on supply of service by
Goods transport agency.
Whereas recipient is not required to pay tax under reverse charge if the service
by GTA is exempt under S.no. 21 of Notification No. 12/2017 -CT which is
reproduced below:-
Services provided by a goods transport agency, by way of transport in a goods
carriage of -
(a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a
consignment transported in a single carriage does not exceed one thousand five
hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for
a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap; or
(h) defence or military equipments.
Thus, if your product falls under any clause of above notification then you are
not required to pay GST on freight under reverse charge. (Reply dt. 12/4/2018)