GST ON CONVEYANCE CHARGES, Goods and Services Tax - GST

[SURYAKANT MITHBAVKAR]

Whether GST is applicable on conveyance charges under RCM.

Posts / Replies

[HimansuSekhar Sha]

If it is a GTA, then RCM is applicable. GTA is defined.

[KASTURI SETHI]

Conveying charges is not GTA. It is like travelling allowance. Not taxable under GST. No question of RCM. However, as expense may be part of transaction value.

[subramanian vijayakumar]

Yes I agree with Sethi sir view

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

In case the conveyance expenses like auto fare expenses is claim by the employees, then RCM is applicable? If yes then what is the tax rate?

Thanks in advance.

[Vamsi Krishna]

• Auto, metered cab charges - Exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.

• Cab service procured from operator (OLA, UBER etc.,) - GST will be paid by the such operator itself. There is no liability on the service receiver. Further, the taxes paid by the operator cannot be availed as credit.

• Cab services procured from other agencies - GST will be paid by the provider itself if they are registered, if not service receiver shall pay GST on the same as a service receiver. The taxes paid is not available as credit.

• Local bus charges - Stage carriage is exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.