How to handle Paid and To Pay customers post GST?

Post GST, walk-in customers WITHOUT GST registration will see a big rise in freight costs. 

As on date, industry is charging consignor or consignee based on Paid or To Pay.  Service Tax is charged after rebate of 75% thus an effective rate of only 4% is charged. 

Many questions arise post GST- look forward to reply from group:

  • What will be place of supply in case of Paid and To Pay? DO we need registration in every state where we have Booking and Delivery?
  • What if Paid is converted to To Pay by customer after booking and at the time of delivery? What if transporter does not have registration at the place of delivery?
  • How do we know GSTIN of consignee in case of To Pay at the time of booking?
  • If we convert To Pay into billing- what rate of GST will apply?

Do post your replies...


  1. # Place of supply for PAID would be consignor location if he is making the payment incase TOPAY consignee location if he is making the payment.
    #If your are registered in every state u will raise bill as SGST/CGST (under RCM) if not registered at the payment received location u will raise bills as IGST mention GSTIN of the party who is making the payment.
    #(How do we know GSTIN of consignee in case of To Pay at the time of booking?) GSTIN of the consignee should be available in the Invoice handed over to you by booking party because that's mandatory documentation before accepting any goods from party.(As per Draft Format under GST Invoice rules -Form GST INV – 1)
    #(If we convert To Pay into billing- what rate of GST will apply?) No changes unless changing is in favour of unregistered customer

    1. Manoj- many thanks for your replies. Transporters to run a risk of non-payment of To Pay even today. They now need to be extra careful to record GST details in each transaction- irrespective of Reverse Charge Mechanism.

    2. If payment is an issue Transporter can always raise debit note within 180 days and can reverse the Stax Credit entitlement for the non-paying customer

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