TAXABILITY ON GTA TO GTA SERVICE

[NAMAN DOKANIA]

Sir,

M/s ABC Pvt Ltd is doing transporting business and it is transporting goods on behalf of M/s XYZ limited (Manufacturing Company). Both are registered under GST. M/s ABC Pvt Ltd takes vehicles from Mr. X (Who is hiring vehicles from Individual Truck Operators). M/s ABC Pvt Ltd issues consignment note, and transports goods to Ms XYZ Ltd. M/s ABC Pvt Ltd gets freight from M/s XYZ Limited.

Case 1: M/s ABC Pvt Ltd is charging tax on transporting in their bill.Will service from Mr X to M/s ABC Pvt Ltd will levy any tax ??

Case 2: M/s ABC Pvt Ltd is not charging any tax on transporting in their bill. And M/s XYZ limited is paying tax on reverse charge. Will service from Mr X to M/s ABC Pvt Ltd will levy any tax ??

AI Summary

Transport Service Hiring Exempt from GST Under Notification No.12/17-CT(Rate) Regardless of Billing Scenario M/s ABC Pvt Ltd, a transport business, is transporting goods for M/s XYZ Ltd, both registered under GST. ABC hires vehicles from Mr. X, who sources them from individual truck operators, and issues consignment notes for the transport. The query concerns whether Mr. X's service to ABC incurs tax when ABC charges tax on its transport service (Case 1) or when XYZ pays tax on reverse charge (Case 2). Both responses confirm that the hiring of vehicles by ABC from Mr. X is exempt from GST under Notification No.12/17-CT(Rate) dated 28.6.17, regardless of the billing scenario.