TaxTMI 
TaxTMI 
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?
Applicability of GST for hiring out trucks
01 Jun 2025 
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GST exemption for truck hiring: hire to a goods transport agency or mere vehicle rental can be tax exempt.
Hiring out trucks can be an exempt supply under Notification No.12/2017 (Entry 22/22(b)) where the vehicle is hired to a goods transport agency or where the owner merely rents the vehicle without issuing a consignment note or performing transport services. To support the exemption maintain hire agreements, invoices specifying vehicle hire, records proving no consignment note was issued, segregated accounting of exempt income, and declarations from hirers when vehicles are given to GTAs; reversal of input tax credit for exempt supplies is required. (AI Summary)
Hiring out trucks can be an exempt supply under Notification No.12/2017 (Entry 22/22(b)) where the vehicle is hired to a goods transport agency or where the owner merely rents the vehicle without issuing a consignment note or performing transport services. To support the exemption maintain hire agreements, invoices specifying vehicle hire, records proving no consignment note was issued, segregated accounting of exempt income, and declarations from hirers when vehicles are given to GTAs; reversal of input tax credit for exempt supplies is required. (AI Summary)