GST ON SERVICE PROVIDED BY TRUCK OWNER TO GTA

[NAMAN DOKANIA]

A Truck Owner-cum-transporter registered in GST provides his truck on hire to GTA (who issues consignment note)(unregistered) who inturns provide service to Manufacturing company. Will the truck owner need to charge GST??

[Shilpi Jain]

The services of the truck owner are exempt

[KASTURI SETHI]

Dear Querist,

Pl. go through the following FAQs. released by Board on 5.1.18:-

Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?

Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Q2. I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease income attract GST?

Ans. Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry No. 22 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Thus there is no doubt about exemption in this scenario.

AI Summary

GST exemption for truck hire to goods transport agencies; no registration required for such exempt transport services.
Services by a truck owner who gives his truck on hire to a goods transport agency are exempt from GST; this exemption applies to both road transport services and rental/lease of a means of transportation of goods to a GTA, and the truck owner is not required to register for GST in respect of those exempt receipts.