GST on supply of service from a GTA to other GTA

[Rajesh Kumar]

Sir/ Madam

Please enlight whether supply of GTA service from one GTA to other GTA is exempted supply ?

Service provider GTA is paying GST @12% with ITC.

What if service receiver GTA provides further service of GTA under RCM ? In this way GST is foregone at both stages.

Regards

AI Summary

Clarification Sought on GST Exemption for Services Between Goods Transport Agencies Under Section 47; Potential Future Amendments Expected. A query was raised regarding whether the supply of services from one Goods Transport Agency (GTA) to another is considered an exempt supply under the Goods and Services Tax (GST). The service provider GTA is paying GST at 12% with Input Tax Credit (ITC). The concern is about the implications when the service-receiving GTA provides further services under the Reverse Charge Mechanism (RCM), potentially leading to GST being foregone at both stages. The response indicated that two consignment notes cannot be issued for one set of goods, suggesting that clarity may come from future amendments following the 47th Council meeting recommendations.