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

Goods transport agency status determines GST liability; absence of a consignment note may render return journey freight exempt but invite scrutiny.
Return journey freight from use of an own lorry to carry third party goods is exempt from GST where the supplier does not issue a consignment note and thus does not qualify as a goods transport agency. Services rendered by a GTA (indicated by issuance of a consignment note) are taxable and may attract forward charge or reverse charge liability depending on recipient category; ancillary services ''in relation to'' transport may also be GTA services. Absence of consignment note reduces risk of taxability but recurring facts may attract departmental scrutiny and show cause proceedings.