TaxTMI 
TaxTMI 
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
GST on Hire charges On Lorry
19 Feb 2021 
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Goods transport agency classification: transport services taxable when operator assumes liability; lack of consignment note not exempting.
Classification hinges on the activity and responsibility: if the transporter accepts responsibility for goods until delivery, the service is classifiable as Goods Transport Agency services and taxable; if the vehicle is provided on time-based hire without such responsibility, it is rental/leasing of transport vehicles and taxable as renting of goods. Non-issuance of a consignment note or the e-way bill format does not, by itself, exempt the activity from GST; substance of the transaction and applicable exemption notifications determine taxability. (AI Summary)
Classification hinges on the activity and responsibility: if the transporter accepts responsibility for goods until delivery, the service is classifiable as Goods Transport Agency services and taxable; if the vehicle is provided on time-based hire without such responsibility, it is rental/leasing of transport vehicles and taxable as renting of goods. Non-issuance of a consignment note or the e-way bill format does not, by itself, exempt the activity from GST; substance of the transaction and applicable exemption notifications determine taxability. (AI Summary)