TaxTMI 
TaxTMI 
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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?
Intermediary service to GTA
09 Aug 2023 
8 Replies 
2008 Views Asked by
Intermediary service: where subcontracting is principal to principal, exemption may not apply and commission is taxable under GST.
Whether an entity engaged by a goods transport agency to arrange transport and sub contract to truck owners is an intermediary service under GST: where the entity subcontracts on a principal to principal, cost plus basis without commission, it is not an intermediary; the truck owner's transport service is exempt, while any commission or differential retained by the arranging entity is taxable. (AI Summary)
Whether an entity engaged by a goods transport agency to arrange transport and sub contract to truck owners is an intermediary service under GST: where the entity subcontracts on a principal to principal, cost plus basis without commission, it is not an intermediary; the truck owner's transport service is exempt, while any commission or differential retained by the arranging entity is taxable. (AI Summary)