GTA service - scope

[KISHOR DATTANI]

our client covered under courier agency service. they hire lorry from the open market, put the parcels in the lorry and then send it from one destination to another. Suppose from kolkata to mumbai. Lorry driver off load the goods at mumbai, collect their lorry hire charges at mumbai. lorry owner/driver neither issues consignment note nor any kind of invoices. My query is whether this will attract under GTA services or not. give reasons please.

AI Summary

Hiring Lorry Without Consignment Note: Not GTA Service, But Courier Service Must Pay Tax Under Different Category. A query was raised regarding whether hiring a lorry from the open market for transporting parcels without issuing a consignment note attracts Goods Transport Agency (GTA) services under service tax laws. One response clarified that if no consignment note is issued, it is not covered under GTA services but may fall under 'Supply of tangible goods for use.' Another response emphasized that the client, being a courier service agency, must still pay service tax under that category, regardless of consignment notes, and the nature of the contract with the lorry owner determines the applicable service tax.