Goods Transport Agency

[VIGNESH]

Sir . Mr.A Owns Two Eicher Truck and One Auto Rikshaw he is in to Carrying Goods and House Hold Utensils from one place to another, Can he call him as GTA and can he Register as GTA under GST?

[Shilpi Jain]

GTA under gst would mean a person who issues Consignment note. If this person who transports issues a consignment note then he would be GTA else not

[KASTURI SETHI]

Also go through this para of the decision of AAR reported as 2020 (6) TMI 520 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND FOREST DEVELOPMENT CORPORATION. The whole decision is worth reading.

"7.7 We further observe that the purpose of issuing consignment note indicates that the lien on the goods has been transferred to the transporter and the transporter becomes responsible for the goods till its safe delivery to the consignee. In the present case also, by issuing Form 2.1 by the applicant, the goods are handed over to the transporter and transporter becomes responsible for the goods till its safe delivery to the destination. For the sake of argument that for being treated as goods transport agency issuance of consignment note is must. If such argument is accepted than there will be no need to pay GST by a person providing service of goods transport merely on a ground that he is not issuing consignment note. And this will open an avenue for evasion by the service providers. This must not have been the intention of the legislature to not tax the service providers who were not issuing consignment notes."

2. Auto Rickshaw is also motor vehicle.

[VIGNESH]

Thank u sir

[Shilpi Jain]

GTA is a very interpretative issue. Department's favourite topic for demanding tax.

[Ganeshan Kalyani]

Is it not a GTO rather than GTA and thereby GST is exempt. He owns the truck.

AI Summary

GTA classification may hinge on issuance of a consignment note, affecting GST liability for truck and auto-rickshaw owners. Qualification as a Goods Transport Agency under GST depends on issuance of a consignment note, which transfers responsibility for goods to the transporter; issuance tends to characterise the service as GTA and attract GST, while treating non-issuance as a basis for exemption has been rejected in advance ruling reasoning because it would permit tax evasion. An auto rickshaw is a motor vehicle and may be covered where the consignment-note criterion is satisfied, and classification remains interpretative with administrative scrutiny affecting registration and liability.