Transporter issuing builty required to take gst registration?

[Rajesh Kumar]

A transporter owns some trucks and issues bilty and has turnover of 20 crs. GST is not being charged and GST is to be paid under reverse charge by the receipient.

Whether this transporter is required to take gst registration when he is issuing Bilty as by issuing bilty he becomes a GTA Or being exempted supplies, he is not required to take Registration?

[KASTURI SETHI]

Bilty is a consignment note. Go through the following decision:-

2020 (6) TMI 520 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND - IN RE : UTTARAKHAND FOREST DEVELOPMENT CORPORATION

[Amit Agrawal]

As per Notification No. 5/2017 – Central Tax dated 19.06.2017, the Central Government specified that the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

And as per Section 23 (1) (a) of the CGST Act, 2017, 'any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act' shall not be liable to registration.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Padmanathan KV]

Shri Amit ji, pls clarify the following point as well for benefit of querist and others:-

Assuming the transporter also makes inter-state supply of GTA services, would he be required to take registration? Section 24 provides for compulsory registration where person makes any inter-state taxable supply.

GTA services though liable under RCM is still "taxable supply". So, in my opinion the transporter will be liable to take registration where he has inter-state supply.

[Amit Agrawal]

Dear Shri Padmanatham Ji,

As query talks about liability under RCM as well as 'exempt supplies' (though both cannot happen simultaneously for same supply), I have only given reference/s of some of applicable legal situation where subject supply is either exempted or liable under RCM.

[Rajesh Kumar]

What is the conclusion of the discussion whether he required to take registration or not ?

And as per Section 23 (1) (a) of the CGST Act, 2017, 'any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act' shall not be liable to registration.

Sir if we through this section, there a word exclusively is used. As per me, GTA also sells used tyres, used batteries, scrap or old truck. Therefore we can not say a single GTA that he provides exclusively exempt services.

Further

Section 24 provides for compulsory registration where person makes any inter-state taxable supply.

Therefore, this section also says for compulsory registration for inter-state taxable supplies and not a single GTA restrict himself for Intra-state supplies.

[Padmanathan KV]

Based on the facts mentioned by you in previous post, he would be required to take registration in my opinion

AI Summary

GST registration requirement for transporters: inter state or taxable supplies trigger compulsory registration despite reverse charge arrangements.
Registration depends on supply character: Notification No. 5/2017 and Section 23(1)(a) exempt persons whose supplies are taxable only under reverse charge or wholly exempt from registration, but compulsory registration under Section 24 applies to any person making inter state taxable supplies; GTA services are taxable supplies even if tax is payable by the recipient, so inter state or other taxable GTA activity triggers GST registration.