Our Queries in GST

[SOPL SOPL]

Dear Sir/Madam,

Good Morning !!

Our queries in GTA (Goods Transport Agency) explained below:

we are providing goods transportation services to ONGC on daily basis for a contract of 2 months.Here, we hired vehicles from third party (i.,e our suppliers) and same was given to rental to ONGC.

The invoice raised by us to ONGC was under GTA and GST was paid under RCM @ 5% (i.e, GST will be paid by our client -ONGC). Because of this we are not availing any input/input services for this inward supply..,

Queries;

1. we are providing transportation of goods services by way of consignment note in which one of the condition is "Carrier not responsible for leakage & breakage" .But, consignment note indicates that lien on goods has been transferred to transporter and he is responsible for goods till its safe delivery to consignee. So, our consignment note is contrary to actual definition..
Due to this , our consignment note is legally valid for GTA applicability ??

2. Did we come under GTA, because we are not carrying any agency functions.
As per my understanding, GTA means all individual truck owners will form one association and run their business in single office such as lorry transport office / lorry association /union etcc.., and also Transport offices like SRMT,Navata , kesineni cargo etc.., they will issue consignment note by considering condition that any goods damaged or loss will be compensated as per value declared.So, they may called as GTA and also act as courier agents also.

So, here by Query is we are not forming any union or association. Therefore, we are not carrying agency functions.

Agency meaning as per dictionary

The agency is the agreement in which one party entrusts another party to conduct business on their behalf. The agency agreement comes in the following forms:

Express agreement (both oral and written)

Implication

Conduct of the principal.

By referring the above definition, we are not coming under agency .

By considering the above definition of agency and consignment note, It seems that we will not be under GTA services, then our outward services will be exempt under GST act.

pls advice on my view and correct me, if iam wrong...

AI Summary

Goods Transport Agency status depends on consignment note form and contractual allocation of carriage liability for GST applicability.
Qualification as a Goods Transport Agency under GST depends on the contractual allocation of carriage liability, issuance and form of the consignment note, and whether the underlying supply is renting of motor vehicles or carriage of goods. An improper or non standard consignment note does not by itself exempt the supplier from GTA classification; authorities and departmental practice treat transport documents broadly as consignment notes and consider records, invoicing and liability allocation when determining GST applicability and reverse charge exposure.