TaxTMI 
TaxTMI 
A registered truck owners having 5-10 trucks having attached their trucks with GTA (providing logistics services to corporate and charging 12% GST) are raising tax invoices and charging GST @ 12% on transportation bill with claiming input of Vehicle and expenses. Is this correct or wrong?
Service by gta to gta
30 Dec 2019 
3 Replies 
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GST treatment of truck hire and GTA services: truck hire exempt, GTA's transport supply taxable under forward charge.
The core operative position is that two services coexist: hiring of truck by the owner to the GTA is an exempt supply, while the GTA's supply of goods transport services to a corporate customer is a taxable supply. The GTA therefore operates under the forward charge mechanism for its transportation service and not under the reverse charge mechanism; this distinction affects the availability of input tax credit for vehicle-related expenses. (AI Summary)
The core operative position is that two services coexist: hiring of truck by the owner to the GTA is an exempt supply, while the GTA's supply of goods transport services to a corporate customer is a taxable supply. The GTA therefore operates under the forward charge mechanism for its transportation service and not under the reverse charge mechanism; this distinction affects the availability of input tax credit for vehicle-related expenses. (AI Summary)