Commercial Vehicle given on hire for transportation of goods

[Kaustubh Karandikar]

XYZ (Manufacturer) have a commercial vehicle for transportation of goods and wants to provide the vehicle on hire to PQR(Manufacturer) for the transportation of Goods and for which there will be a monthly billing on the basis of number of trips and locations where the goods have been transported. Both are in the same state.

1) What will be Rate of GST to be charged on the Invoice by XYZ to PQR? And

2) The nature of Service (Whether this can be treated as GTA service or not?).

AI Summary

Hiring of commercial vehicle: exemption applies only when hired to a goods transport agency; otherwise treated as taxable renting service.
Exemption for giving a commercial truck on hire applies only when the vehicle is given on hire to a goods transport agency or a state transport undertaking; hiring to any other person is not exempt and is treated as renting of motor vehicles subject to GST. The classification turns on recipient status and practical control (hiring vs renting), and issuance of a consignment note is mandatory only for GTAs.