Intermediary service to GTA

[Debtosh Dey]

An entity is engaged by a GTA for transportation of his client's goods. The said entity sub-contracts the job to truck owners. Is the service of the entity exempted from GST?

AI Summary

GTA Subcontracting Services Likely Not Exempt from GST; Debate on Intermediary vs. Principal-to-Principal Basis Continues An entity engaged by a Goods Transport Agency (GTA) sub-contracts transportation services to truck owners and inquires if its service is exempt from GST. The discussion highlights differing views on whether the service is intermediary, subcontracting, or outsourcing. Some participants argue that the entity's service is not exempt as it operates on a principal-to-principal basis and charges on a cost-plus basis. Others suggest that if the entity earns a commission, it is liable for GST. The consensus leans towards the service not being exempt under current GST regulations.