Inclusion of service incidental to GTA service

[Debtosh Dey]

If I refer answer to FAQ 6 on Transpsort & Logistics issued by CBITC, I find the last paragraph conveying opposite meaning the paragraphs above it. I reproduce the FAQ-Answer below :

'Question 6: Are intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, provided in relation to transportation of goods by road to be treated as part of the GTA service, being a composite supply, or these services are to be treated as separate supplies.

Answer: The GTA provides service to a person in relation to transportation of goods by road in a goods carriage, which is a composite service. The composite service may include various intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, which are provided in the course of transport of goods by road. These services are not provided as independent services but as ancillary to the principal service, namely, transportation of goods by road. The invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services.

In view of this, if any intermediary and ancillary service is provided in relation to transportation of goods by road, and charges, if any, for such services are included in the invoice issued by the GTA, such service would form part of the GTA service and would not be treated as a separate supply. In fact, any service provided along with the GTA service that is part of the composite service of GTA shall be taxed along with GTA service and not as separate supplies.

However, if such incidental services are provided as separate services and charged separately, whether in the same invoice or separate invoices, they shall be treated as separate supplies.'

My query is that can loading, unloading, etc provided incidentally with GTA service, can be invoiced separately with GST (evidently for setting off GST on input service bills for such incidental services) specially when GTA service itself is subjected to reverse charge of GST payable by the customers?

Is there any anomaly between first two paragraphs of the Answer to FAQ 6 cited above and the last paragraph ? (First two paragraphs suggest that incidental services are inseparable parts of GTA service which is the principal service whereas the last paragraph suggests that such incidental services can be separately invoiced).

AI Summary

Clarification on Ancillary Services in Goods Transport Agency Under GST: Separate Invoices Mean Separate Supplies A user raised a query regarding the inclusion of ancillary services like loading and unloading in the Goods Transport Agency (GTA) service under GST. The FAQ from CBITC suggests that these services are part of the composite GTA service when included in the same invoice, but can be treated as separate supplies if invoiced separately. The user questioned the apparent contradiction in the FAQ's guidance. A respondent noted that similar clarifications have been issued in other contexts, such as vehicle repair services and tax rates for batteries and UPS, where goods and services are disclosed separately and taxed accordingly.