Taxability of GTA services in case of supply of exempt and taxable goods in a same lorry

[HIMANSHU BHUSHAN]

How does the taxability of GTA services get affected when both exempt and taxable goods, such as rice (exempt) and spices (taxable), are transported in the same lorry under a single consignment note? Does the exemption on GTA services in case of supply of rice still apply, or is it negated due to the presence of taxable goods in the same consignment? If possible, please also provide the provisions or any notifications or circulars clarifying the same. 

AI Summary

GST applies to entire freight when transporting exempt and taxable goods under single consignment note A taxpayer inquired about GST taxability on goods transport agency services when transporting both exempt goods (rice) and taxable goods (spices) under a single consignment note. Tax experts clarified that if freight charges are separately itemized for exempt and taxable goods, GST applies only to freight for taxable goods. However, when a lump sum freight amount is charged under one consignment note covering both types of goods, the entire freight becomes taxable. The exemption under Entry 21(d) of Notification 12/2017 for rice transportation applies only when the consignment note covers solely exempt goods, not mixed consignments.