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

[Shilpi Jain]

A GTA is a person who issues consignment note. Can 2 consignment notes be issued for the transportation of one set of goods?

If not then there cannot be 2 GTAs for one transaction.

I hope the amendment in pursuance to the recommendations in the 47th Council meeting will bring some clarity on this matter.

AI Summary

GTA consignment note requirement affects GST treatment where multiple GTAs claim supply of the same transport service. Whether a Goods Transport Agency (GTA) supplying GTA services to another GTA is taxable or exempt depends on whether two distinct GTAs can validly exist for the transport of the same consignment; since a GTA is identified by issuance of the consignment note, if one consignment cannot carry two consignment notes there cannot be two GTAs for a single transaction, making the consignment note criterion determinative pending legislative clarification.