GST on Hire charges On Lorry

[Reeba Raju]

I am a GST registered contractor who undertakes civil contract works. I also own a lorry which is used for transportation of goods by road and hire charges is collected by me directly. Is the service provided by me by way of transportation of goods by road is taxable or exempted as covered by Notification No. 12/2017 under heading 9965

AI Summary

Contractor's Lorry Hire Charges Taxable Under GST; Key Distinction Between GTO and GTA Noted, Consignment Note Crucial A GST-registered contractor inquired about the taxability of hire charges for a lorry used for transporting goods. The discussion clarified that the service is taxable, not exempt under Notification No. 12/2017, and falls under 'Renting or leasing of goods.' If charges are based on time, a GST rate of 18% applies under HSN 9966. However, if based on distance, it may be exempt. The distinction between Goods Transport Operator (GTO) and Goods Transport Agency (GTA) was discussed, emphasizing that issuing a consignment note is crucial for classification as a GTA, affecting GST applicability.