TaxTMI 
TaxTMI 
Sir,
My client is a GTA agent. He is getting orders from another GTA service provider as sub contract/ whole contract. Is this Inter GTA services allowed in the same line of business. Please Advice.
Inter GTA Services
02 Feb 2024 
5 Replies 
2122 Views Asked by
Consignment note determines GTA status; tax treatment varies between forward charge, recipient liability under RCM, or vehicle hire exemption.
A person issuing the consignment note is the Goods Transport Agency. If B issues the consignment note to the end customer but subcontracts execution to A, B is the GTA and may discharge GST under forward charge with ITC, under the option without ITC, or the customer may be liable under reverse charge. A's services to B are taxable as supporting or residual transport services unless recharacterised as hire of truck to B, which may be exempt; B must bifurcate intermediary and GTA activities and apply correct classification and tax liability. (AI Summary)
A person issuing the consignment note is the Goods Transport Agency. If B issues the consignment note to the end customer but subcontracts execution to A, B is the GTA and may discharge GST under forward charge with ITC, under the option without ITC, or the customer may be liable under reverse charge. A's services to B are taxable as supporting or residual transport services unless recharacterised as hire of truck to B, which may be exempt; B must bifurcate intermediary and GTA activities and apply correct classification and tax liability. (AI Summary)