Return Journey Income - Co using own lorry for supply and receives Income for return load - GST applicable

[Balakrishnan Ramalingam]

Sirs,

My clients use their own lorry for supply of their products to customers. While the lorries returning to factory they also carry some goods of third parties and enjoy some freight income. No consignment note is issued. Neither they are GTA. Please advise, whether GST should be collected or paid of such Return Journey Income.

Thanks

AI Summary

Freight Income from Return Trips Without Consignment Notes May Be Exempt from GST Per Notification No. 12/2017-CT A client uses their own lorry for product deliveries and earns freight income by transporting third-party goods on return trips without issuing consignment notes. The query is whether this return journey income is subject to GST. One response indicates that without issuing consignment notes, the service does not qualify as a Goods Transport Agency (GTA) service, thus exempting it from GST under Notification No. 12/2017-Central Tax (Rate). However, another perspective warns that despite not qualifying as a GTA, the absence of consignment notes may still attract scrutiny and potential GST liability. The client is advised to consider these factors when deciding on GST applicability.