Question
My business is supply of natural sand &
Transport of goods. My business place is vapi gujarat and we are collecting
purchase sand form morbi gujarat there is approx 550 km long distance... we are
send our truck from vapi to morbi for collect sand in this time we are load
goods form other party because empty truck and other party give me
transportation charge rent,
1. On which percentage i will attract GST rate on supply of sand.?
2. On which percentage i will attract GST rate on Transportation charge ?
3. We can claim input tax credit ? (Truck tyre,tube etc) If yes which percentage
attract to party ?
4. RCM applicable for me ?
5. New Purchase of Truck claim ITC ? (In Transport Business)
Answer
You are providing following two types of supply:
1) Supply of Natural Sand
2) Supply of GTA services
It is not concerned that the GTA Services is supplied because of some prevailing
circumstances.
The treatment in GST is not concerned under which circumstances the services are
provided.
Our Reply is as follows.
Supply of Sand
The Sand will attract 5% rate vide serial no. 113 of schedule I of Notification
No. 01/2017 Central tax (Rate) under HSN code 2505.
GTA Services
a) Under reverse charge
The GTA services is covered under reverse charge so your customer will pay tax
@5% under reverse charge. (Where GTA has not paid Tax @12%) as per Notification
13/2017-Central Tax (Rate) vide s.no. 1
b) Under forward charge
The tax may be paid by you on GTA @12% with availment of ITC on truck, tyre,
tube, etc use for transportation.
Conclusion:- Considering the nature of business you have to prepare a
cost and benefit analysis to decide whether you want to go for ITC of the input
of capital goods used for transportation.
We take this opportunity to inform you that tax on GTA is exempted in certain
cases like transportation of agricultural goods, etc
If you are taking ITC then you will have to reverse credit on pro-rata basis as
per Section 17.
The detail procedure of Reversal is given in Law crux GST. (Reply dt.
26.06.2018)