A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage. If a consignment note is not issued by the transporter, the service provider will not come within the ambit of the goods transport agency.
An invoice is a commercial document that maintains the record of transactions between the buyer and the seller. On the other hand, a consignment note is an export document that serves as evidence of a concluded carriage contract.
Where the supplier does not issue a consignment note or similar document, the services do not qualify as GTA services, and hence should not be taxable. This point has also been clarified by the CBIC in the FAQs issued for the transport sector.
The rule of GST on freight charges stipulates that GST is applicable based on the mode of transportation. Typically, road and rail transport services attract a 5% GST rate, while air and sea freight services are taxed at 18%.
A Goods Transport Agency (GTA) primarily provides road transportation services for goods. This involves: Arranging transportation: Coordinating the movement of goods from the consignor to the consignee. Loading and unloading: Handling the physical movement of goods.
A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage. If a consignment note is not issued by the transporter, the service provider will not come within the ambit of the goods transport agency.
A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage. If a consignment note is not issued by the transporter, the service provider will not come within the ambit of the goods transport agency.