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 ??

[KASTURI SETHI]

Hiring of vehicle by ABC Ltd. ( as GTA ) from X is exempted vide Notification No.12/17-CT(Rate) dated 28.6.17 (serial no.22 of notification) in both the situations given by you. If you have some other query, post here again.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir, GST is not applicable in this case.

AI Summary

GST exemption for hiring of vehicles applies to vehicle providers to GTAs, irrespective of charging or reverse-charge. Hiring of vehicles by ABC Pvt Ltd as a goods transport agency from Mr X is exempt under Notification No.12/17-CT(Rate) dated 28.6.17 (serial no.22) where the vehicle is used to transport goods and the GTA issues the consignment note; this exemption applies regardless of whether the GTA charges GST or the recipient pays under the reverse charge mechanism.