GST Applicability for GTA and non-GTA
GST application will depend on TWO factors- what is the Service Account Code and what is the GST status of customer paying freight.
Services (Air/Express/Economy/Standard) will be divided
between GTA and Non-GTA Service Account Codes (SAC)
·
For GTA products
o
Customer is GST registered
§
Transporter need not pay GST under Reverse
Charge Mechanism and rate of GST is 5%
§
This means that in invoice to customer,
transporter will only mention GST amount to be paid by customer and not add the
same to invoice total
o
Customer is not GST registered
§
Transporter has to take GST below limit
certificate from customer
§
Transporter will charge GST of 18% on freight
and add to docket total and then to invoice total
·
For Non-GTA products
o
Customer is GST registered
§
Transporter will charge GST of 18% on freight
and add to docket total and then to invoice total
o
Customer is not GST registered
§
Transporter has to take GST below limit
certificate from customer
§
Transporter will charge GST of 18% on freight
and add to docket total and then to invoice total
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