Freight charged/Services by way of transportation of Goods
Query (Issue) Started By: – Shipra Garg Dated:- 18-8-2017 Last Reply Date:- 19-8-2017 Goods and Services Tax – GST
Got 8 Replies
GST
Dear Sirs,
Kindly help me in identifying the purpose of Point 9 of GST service exemption list. The same has been reproduced below:
“9. Service by way of transportation of goods
(i.) by road except the services of –
(A) a goods transportation agency; or
(B) . . . . ”
Section 15(C) of CGST Act:
“incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of,
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supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
Reply By RAMESH PRAJAPATI:
The Reply:
Section 15 states how to determine the value for taxable supply. There are inclusions and exclusions also.
Reply By KASTURI SETHI:
The Reply:
The following kinds of services by way of transportation of goods by road are exempted:-. 1. Transportation of goods by way of a three wheeler scooter. 2. By a tractor 3. By a vehicle not covered under Motor Vehicle Act which falls under the Scope of GTA. Example can be traced out on any relevant site. Section 15 (C) talks of valuation of taxable
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ervices by way of transportation of goods (i) by road except the services of- (A) a goods transportation agency.
As per Section 2(30): Composite Supply is a supply of two or more taxable supplies. In above case there is one taxable supply and other is exempt by virtue of N No. 12/2017.
Reply By Vamsi Krishna:
The Reply:
When you buy cement, freight is bundled together with the principal supply of cement supply and hence there is no question of exemption.
Here the transporter who renders transportation services to Cement supplier/seller ( not to the buyer) falls under exemption notification. The GST liability of transportation has to be discharged by Cement supplier under Reverse charge.
You being buyer has nothing to do with their exem
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