Applicability of GST for hiring out trucks

[Sudipta Dey]

A registered person has some trucks. He hires out his trucks to individuals (registered/ un-registered) for goods transport. He in return receives Hire charges and the same is booked in balance sheet and profit and loss accounts, but mentioned as exempted supply in GSTR-9 and GST is not paid accordingly. Why is it exempted? Under which conditions is it exempted and what is the valid notification? What are the documents to be maintained by the taxpayer to hire charges be an exempted supply?

AI Summary

Truck Owners Can Claim GST Exemption for Goods Transport Under Specific Hiring and Documentation Conditions A registered truck owner can potentially qualify for GST exemption when hiring out trucks for goods transportation under specific conditions. Exemption applies if no consignment note is issued, trucks are hired to a Goods Transport Agency (GTA), or used for transportation without logistics control. Key documentation including rental agreements, invoices, and declarations must substantiate the exempt status. Proper reporting in GST returns and potential input tax credit reversal are essential compliance requirements.