Taxability of service

[Mujahid Khan]

Dear Sir

My brother is engaged in transportation of soil from mining area to brick fields and he does not connected with any other business on mining area.

Is his service is exempt under GST because he is providing only transportation services not other mining services.

Another issue is that he is going to purchase a new transportation vehicle(Dumper). Can he claim ITC for another business vertical he owns.

AI Summary

GST Exemption on Soil Transport Services Clarified; ITC on New Vehicle Allowed If Output Services Taxable A participant inquired about the GST exemption status for his brother's transportation service, which involves moving soil from mining areas to brick fields. He also asked if he could claim Input Tax Credit (ITC) for a new transportation vehicle he plans to purchase for another business. Respondents clarified that transportation services are generally exempt under GST, but services provided by a Goods Transport Agency are taxable under reverse charge. Additionally, ITC on vehicles like dumpers is permissible if the output services are taxable under GST.