Page 6 - CHAPTER 3 (1).cdr

Generally the liability to pay GST in case of service provided by GTA to
3 For sales to locations in neighboring States (` 55,00,000), ` 3,73,000
notified registered person shall lie on the recipient of service as per reverse charge the company booked the goods by road carriers (GTAs)
mechanism(if GTA opt for 5%). and paid road freight [Out of the total sales to neighboring
But in the given case, PMC being a local authority even though registered States, goods worth ` 10,00,000 were booked through a
CH 3 GTA which paid tax @ 12%. Freight of ` 73,000 was
under CGST Act, not liable to pay tax on service provided by GTA under reverse charge 4 paid to such GTA. ] ` 55,000.
Reverse Charge & ECO is also not liable to pay tax under forward charge. the company booked the goods by a GTA and paid road ` 35,000.
mechanism.
For purchase of flour from Madhya Pradesh (` 25,00,000),
Note:- Given service is subject to exemption (refer Exemption chapter). Hence GTA

freight
For purchase of butter from Punjab (` 15,00,000), the
(GTA +RCM + Exemption)
CCP 03.02.10.00
company booked the goods by a GTA and paid road freight
XYZ Ltd., New Delhi, manufactures biscuits under the brand name 'Tastypicks'.
the goods by a GTA in a single carriage and paid road freight
Biscuits are supplied to wholesalers and distributors located across India on FOR
For transferring the biscuits (open market value - ` 4,00,000)
basis from the warehouse of the company located at New Delhi. For local purchase of baking powder, the company booked ` 1,500
The company uses multiple modes of transport for supplying the biscuits to one of its sister concern in Rajasthan, the company booked ` 40,000.
the goods by a GTA and paid road freight
to its customers spread across the country. The transportation cost is shown as
a line item in the invoice and is billed to the customers with a mark-up of 2% on (I) Based on the particulars given above, compute the GST payable on the
total amount of freight paid (inclusive of taxes). amount paid for transportation by XYZ Ltd. when it avails the services

Flour used for the production process is procured from vendors located in of different transporters.
Madhya Pradesh on ex-factory basis. The company engages goods transport (ii) Compute the GST charged on transportation cost billed by the company
agencies (GTA) to transport the flour from the factories of the vendors to its to its customers.
factory located in New Delhi. Note: - Assume the rate of GST on transportation of goods and biscuits to be 5%
The company has provided the following data relating to transportation and 12% respectively [except where any other rate is specified in the question].

of biscuits and flour in the month of April 20XX: [RTP Nov 18]
Answer:- Calculation of GST on Transportation service availed
S.No. Particular Amount
Freight GST
1 For sales within the NCR region (` 20,00,000) Particulars (`) Payble Reason
` 54,000.
The company arranged a local mini-van belonging to an Transportation of biscuits 54,000 Nil Only the transportation of goods by
individual and paid him in a local mini van road by a GTA is liable to GST.
2 For sales to locations in distant States (` 1,78,00,000), the ` 3,17,000. belonging to an individual Therefore, transportation of goods by
company booked the goods by Indian Railways and paid rail road otherwise than by a GTA is
freight exempt from GST
Transportation of biscuits 3,17,000 15,850 GST under forward charge
by Indian Railways
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