Hiring of Goods Vehicle to GTA

[Deepak D]

My Client has provided vehicles for the Goods Transportation not entered into any agreement with GTA. Vehicle are given him on Fixed KM basis. Further the Cost of Fuel and Driver Salary is paid by my Client.

Is it considered as Hiring of Vehicles as the Cost of Fuel is included?

Whether the Vehicle Hiring provided to GTA is exempt from GST

AI Summary

Vehicle hiring exemption to goods transport agents clarified: renting vehicles to GTA is GST-exempt, agreement not required.
Provision of vehicles to a goods transport agent on a fixed-kilometre basis with fuel and driver costs borne by the owner can qualify as hiring/renting of vehicles and, when supplied to a GTA for transportation of goods, is exempt from GST; a written agreement is not necessary for that characterization, though documentary support is advisable, while services provided by the GTA remain taxable.