Exempt supply by GTA

[Rajat Gupta]

XYZ is registered as GTA under the GST Act. Apart from goods transport service under RCM basis, it also provides its own vehicle on hire to other GTAs, which happens to be an exempt supply. Is XYZ also required to issue bill of supply for such vehicles provided on hiring basis?

AI Summary

Goods Transport Agency XYZ Must Issue Bill of Supply for Exempt Vehicle Hire Services Under GST Regulations XYZ, a registered Goods Transport Agency (GTA) under the GST Act, provides goods transport services on a reverse charge mechanism basis and hires out its vehicles to other GTAs, which is an exempt supply. The discussion clarifies that despite the exemption, XYZ must issue a bill of supply for these hiring services as mandated by GST regulations. One participant suggests considering deregistration to avoid issuing GST documents, though this would necessitate using commercial invoices instead. Compliance with documentation requirements remains essential even for exempt supplies.