44AD BUSINESS ALONG WITH 44AE

[RAHUL GAIKWAD]

My one client who is reg under GST and he is Empty oil tins supplier and files IT Return under 44AD for that and pays GST also, but he owns One Transport Vehicle also and earns 1 lakh to 2 lakh yearly and files IT return 44AE but my question is IT is Taxable under GST.?

[KASTURI SETHI]

The scheme of section 44 AE is designed to give relief to small taxpayers engaged in the business of plying, hiring or leasing of goods carriages. So your client's service is exempt. Here are two FAQs dated 5.1.18 which are relevant for your client.

Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?

Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?

Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Q2. I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease income attract GST?

Ans. Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry No. 22 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017

[RAHUL GAIKWAD]

my question is that, Now I am already Reg, under GST and paying GST of Trading business. What should I do for Transport Business.? ( I have only 1 Vehicle)

[Ganeshan Kalyani]

Show it under exempt turnover in the GST return.

[KASTURI SETHI]

If your client is already registered under GST Act, it does not mean he should pay tax on the supply of exempted service. Anyhow, Sh.Ganeshan Kalyani Ji has resolved your problem.

[RAHUL GAIKWAD]

Thanks kalyani ji and kasturi sethi ji

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AI Summary

Transport Income Exempt from GST: Report Under Exempt Turnover in GST Return per Notification No. 12/2017-Central Tax (Rate) A client registered under GST supplies empty oil tins and files income tax returns under section 44AD. The client also owns a transport vehicle, earning between 1 to 2 lakh annually, and files returns under section 44AE. The query raised was whether the transport income is taxable under GST. It was clarified that services related to transportation of goods by road are exempt from GST, as per Notification No. 12/2017-Central Tax (Rate). The client should report the transport business under exempt turnover in the GST return, as advised by participants in the discussion.