GTA or Business Auxilliary?

[yash banthia]

We have a chain of retail stores which employs transport agencies for distributing FMCG product and Fruits and vegetables from distribution centre to retail stores.I have a confusion about whether these agencies providing Business Aux. Service or GTA service as the service is provided to one entity only?and what would be the service tax implication?

AI Summary

Transport Services Clarified: Consignment Notes Define GTA Classification; Fruit & Veg Transport Exempt from Service Tax. A retail chain employs transport agencies to distribute FMCG products and produce from a distribution center to its stores. There is confusion about whether these services should be classified as Business Auxiliary Services or Goods Transport Agency (GTA) services, especially since the service is provided to a single entity. The response clarifies that if the transport agency issues a consignment note for each consignment, it should be classified as GTA. Additionally, the transportation of fruits and vegetables is considered an exempt service under service tax regulations.