FAQ: How Much Gst On Courier Services?

What is the GST rate on courier services?

SAC Code 996812 Courier services will be taxable at 18% GST.

How do I charge GST on courier services?

Courier services categorised under SAC Code 996812 will be taxable at 18% GST. Example: – XYZ Ltd is a Courier agency service provider who renders daily courier services to AMT Ltd from Delhi to Mumbai, on such matter X Ltd shall charge & collect GST at Rate of 18 %. SAC Code 996812 will be payable at 18% GST.

Is GST input available on courier charges?

Yes, GST paid on courier service for the furtherance of business is eligible for Input Tax Credit (ITC). Make sure that your GST Identification Number (GSTIN) is provided on the courier invoice.

Is RCM payable on courier services under GST?

my question is whether RCM is applicable on courier charges even if it was paid by courier company? Reply—Supply of services by way of transportation of goods by road (unless provided by a GTA or Courier agency) are exempt from GST and thereby not subject to tax.

Are courier services subject to GST?

The courier does not charge the GST/HST on its service, because it is an interlining carrier and not the invoicing carrier. When a courier company contracts with a person to deliver goods, the courier company issues an invoice to its customer and is responsible for charging and collecting the GST/HST.

Is delivery charges taxable under GST?

Under GST, tax on the shipping, freight, and logistic charges have changed. GST must be charged on the cumulative value of supply. If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment.

Is GST applicable on delivery Challan?

Delivery challan is a document which is necessary with transportation of goods from one place to another when the transaction is not treated as supply under GST. In other words, a delivery challan is issued when you are required to send goods or capital goods but GST is not applicable to that transaction.

Who will pay GST on transportation?

13/2017- Central Tax dated 28/06/2017 the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the receiver of service.

Can we claim ITC on courier charges?

Can we are eligible for ITC? Reply— Yes, ITC of overseas courier charges is allowed, it is not restricted; taxpayer is eligible to claim such ITC. Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.

What is the GST rate for transportation?

no. 11, (i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) (Heading 9965 &9967 respectively) attracts GST @ 2.5% or 6% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 5% or 12%.

Is GST applicable on Parcel food?

As of now, GST on food items or food services is not charged more than 18% and no food items are as of yet featured in the highest tax bracket of 28%.

Is GST applicable on postal services?

As per GST Law, there is no GST payable on Postal items. So the rate of GST payable on Postal items. The Council has broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods.

What is the limit for RCM under GST?

Registration: A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states except J & K) is not applicable to them.

What is GST rate under RCM?

GST rate on GTA Services under RCM – 12% or 5%? -any casual taxable person. Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.