Invoice to GTA by A GTA

[Asked by Guest]

What would be the GST if a GTA raised invoice to a GTA.

[Shilpi Jain]

Can there be 2 consignment notes for one transportation of goods?

[Rajagopalan Ranganathan]

Sir,

In my opinion, why one GTA raises invoice on another GTA. The GTA who raises the invoice will be called as consignor and not as GTA. The reasons for raising such invoice are to be looked into before arriving at/or giving any advice.

[KASTURI SETHI]

There cannot be two or more consignment notes for the same transaction and movement of goods.

[KARISHMA CHAWLA]

The question might be regarding a single transport between GTA and a client of the other GTA, but billed to the other GTA.

In this case the service provided by GTA to another GTA may not come under exemption of 'Services by way of giving on hire to a GTA' because one time transport may not be considered as 'hire' basis.

[KASTURI SETHI]

It appears to me sub-contractor issue is involved. The querist should elaborate his query, if he is really interested in seeking correct and concrete reply. Otherwise we can say that this is a hypothetical query.

[KARISHMA CHAWLA]

Sir Kasturi Sethi, can you pls share your view for sub-contractor basis arrangement? I was myself having the query when landed here..

[KASTURI SETHI]

KARISHMA CHAWLA JI,

Pl. go through the following three decisions : (This may help you in understanding sub-contractor issue.)

2020 (7) TMI 78 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : POSCO INDIA STEEL DISTRIBUTION CENTRE PVT. LTD.

2020 (7) TMI 49 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : LIBERTY TRANSLINES

2020 (9) TMI 1104 - APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : LIBERTY TRANSLINES

[Ganeshan Kalyani]

In my view it would be a support service.

AI Summary

Consignment note uniqueness affects GST treatment where one GTA invoices another, raising subcontractor and hire exemption questions.
Characterisation of GST when one GTA invoices another depends on whether the invoicing party functions as consignor or as a GTA providing transport. A single consignment note should cover a single movement. One-time transport billed between GTAs may not qualify as hiring under the exemption for services given on hire to a GTA. Whether the transaction is a subcontractor arrangement or a support service determines exemption availability and GST treatment.