Page 85 - CA Final GST

Badlani Classes

2- Consignment note: Courier services do not involve issuance of consignment note
i.e., registration number of the goods carriage is not mentioned therein. However,
in case of GTA services, consignment note is issued mentioning therein
registration number of goods carriage.
Demurrage will form part of value: The demurrage also represents a service beyond
contracted period and will, therefore, form part of the value of GTA services.
GST Rates :
1- RCM : @ 5% (with ITC)
2- Forward Charge System : @ 5% (No ITC)
3- Forward Charge System : @ 12% (Full ITC)
Que. Calculate the value of taxable service of ‘X’ Transport Company engaged in the business
of transport of goods by road. Give reasons for taxability or exemption of each item. No
freight is received from any of the specified category of consignor / consignee. Suitable
assumptions may be made wherever required. Rate of GST is 5% , if X does not avail
input credit. X has decided to opt it (`):
1 Total freight charges received by ‘X’ during the year 13,50,00
0
2 Freight charges received for transporting fruits 1,25,000
3 Freight collected for transporting small consignment for person 75,000
who paid less than `750 for each consignment
4 Freight collected for transporting goods in small vehicles for 1,50,000
persons who paid less than `1,500 per trip

Ans. Computation of taxable value (assuming no small service provider exemption
available)
Total freight charges received by ‘X’ during the year 13,50,000
Less: Transport of fruits-exempt, as fruits are agricultural produce (1,25,000)
Freight collected for transporting small consignment for persons who (75,000)
paid less than `750 for each consignment- Exempt, as amount per
consignment is upto`750
Frei9ght collected for transporting goods in small vehicles for persons (1,50,000)
who paid less than `1,500 per trip- Exempt, as amount per trip doesn’t
exceed `1,500
Taxable sum 10,00,000
GST @ 5% (as GTA does not avail input credit) 50,000

Que. M/s Commercial Goods Services, a goods transport agency furnishes the following
information. Determine value of services and tax @ 5% (with no credit) (amounts `)
(i) Service provided to XYZ Co. Ltd. where person liable to pay 30,00,000
freight is XYZ
(ii) Freight for transport of food grains and pulses 1,50,000
(iii) Service to an unregistered firm 6,00,000
(iv) Service provided as a ‘clearing and forwarding agent’ 2,00,000
(v) Composite service provided which include packing/un packing, 2,00,000
loading, unloading of ‘used house hold goods’ in the course of
transportation by road
(vi) Tax paid on input services used in providing goods transport 84,000
agency services

Ans. Computation of taxable value and tax thereon:
Since tax @ 5% is opted, reverse charge is applicable
Service provided to XYZ Co. ltd. where person liable to pay freight in GTA not
XYZ-Since person liable to pay freight is a company/ body corporate, liable to
hence, person liable to pay GST IS XYZ Ltd. The assessee, viz. GTA pay GST Page84
need not pay any GST.
Transport of food grain/pulses-Exempt specifically Exempt

Central Goods & Services Tax Act, 2017