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Transportation of biscuits 3,00,000 15,000 GST is payable by XYZ Ltd. under ii) Computation of GST charged on transportation cost billed by XYZ Ltd. to its
reverse charge in terms of section 5(3)
by GTA customers
of the IGST Act, 2017
Legal Provision :- As per sec 8(a) read with sec 2(30) of CGST act 2017, The tax
Transportation of biscuits When the GTA pays tax @ 12%, tax is
73,000 8,760 liability on a composite supply shall be treated as a supply of such principal supply as
by GTA @ 12% payable by the GTA under forward CH 3
charge and not by the recipient under per sec 2(90) of CGST Act.
reverse charge Since XYZ Ltd. is supplying biscuits on FOR basis, the service of transportation of
biscuits gets bundled with the supply of biscuits. Thus, the supply of biscuits and
Transportation of flour by 55,000 Nil Services provided by GTA by way of
GTA transport (in a goods carriage) of, inter transportation service is a composite supply, chargeable to tax at the rate applicable
alia, flour are exempted from GST to the principal supply (biscuits) i.e.,12% Reverse Charge & ECO
Note:- All the above answer read with reference to the Notification no. 12/017
Transportation of flour by 55,000 Nil Services provided by GTA by way of
CT (R) & 9/2017 IT (R) dated 28.06.2017. & Notification No. 10/2017 IT (R)
GTA transport (in a goods carriage) of, inter
alia, flour are exempted from GST dated 28.06.2017
Particulars Freight GST Paid Freight billed GST
Transportation of butter by 35,000 1,750 Though services provided by GTA by way
of transport of milk is exempt from GST, paid on freight (With mark- Charged
GTA
road transport of butter will not be (`)[A] (`)[B] up@ 2% on @ 12 %
[A] +[B])[`] [`]
exempted as butter is milk product and
not milk.
Transportation of biscuits in a local 54,000 55,080 6,610
GST is payable by XYZ Ltd. under
reverse charge in terms of section minivan belonging to an individual
5(3) of the IGST Act, 2017
Transportation of biscuits by
3,17,000 15,850 3,39,507 40,741
Indian Railways
Transportation of baking 1500 Nil Services provided by a GTA by way of
powder by GTA transport in a goods carriage of goods, Transportation of biscuits by GTA 3,00,000 15,000 3,21,300 38,556
where consideration charged for the Transportation of biscuits by GTA 73,000 8,760 83,395 10,007
transportation of goods on a consignment @12 %
transported in a single carriage does not Total tax charged by XYZ Ltd. On 95,914
exceed ` 1,500, are exempt from GST transportation cost billed to the
customers*
Transportation of biscuits 40,000 2,000 GST is payable by XYZ Ltd. under
*Note: It has been assumed that there is no mark-up on transportation cost billed to
by GTA to sister concern reverse charge in terms of section
sister concern (non-customer).
5(3) of the IGST Act, 2017
Total tax payable by XYZ
43,360 -
Ltd. on availing services
of different transporters
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CA Final GST Questioner
