TaxTMI 
TaxTMI 
A GTA -1 is taking services from truck operators and is providing trucks on hire to another GTA-2 and then the same is being providing to factory owner. The tax is being paid by Factory owner on bill raised by gta-2 on reverse charge. Do GTA-1 need to raise any GST bill to GTA-2??
GTA PROVIDING SERVICES TO GTA
13 Oct 2019 
4 Replies 
15313 Views Asked by
Exempt supply of goods transport services can become taxable when an intermediary rents or charges consideration for vehicle hire.
The initial hire from the truck owner to the intermediary is an exempted supply. A separate taxable supply arises when the intermediary supplies the vehicle to a downstream hirer for consideration; that supply is taxable as either an intermediary service (if commission) or Right To Use Of Tangible Goods (if rental), and the intermediary should issue a tax invoice and account for GST on the consideration received. (AI Summary)
The initial hire from the truck owner to the intermediary is an exempted supply. A separate taxable supply arises when the intermediary supplies the vehicle to a downstream hirer for consideration; that supply is taxable as either an intermediary service (if commission) or Right To Use Of Tangible Goods (if rental), and the intermediary should issue a tax invoice and account for GST on the consideration received. (AI Summary)