TaxTMI 
TaxTMI 
TaxTMI 
rate of tax on cargo handling charges.
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....ate of tax on cargo handling charges.<br> Query (Issue) Started By: - ved batra Dated:- 12-4-2020 Last Reply Date:- 13-4-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Is the services of cargo handling charges and the services of transportation of goods by sea or air attract the same rate of tax under GST ? Is the Services of cargo handling charges is composite service of transporta....
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....tion of goods by sea or air under GST ? Reply By KASTURI SETHI: The Reply: (1) No. Cargo Handling Services are classified under SAC 996719 and attract GST@18%. Transportation of goods by air fall under 996531 and by sea 996521 & 996522. (2) Not a composite service. Reply By ved batra: The Reply: Sir, Good Morning, Thanks. CBIC vide Question 6 of FAQ's has clarified. Question 6: Are inter....
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....mediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, provided in relation to Page 2 of 5 transportation of goods by road to be treated as part of the GTA service, being a composite supply, or these services are to be treated as separate supplies. Answer: The GTA provides service to a person in relation to transportation of goods b....
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....y road in a goods carriage, which is a composite service. The composite service may include various intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, which are provided in the course of transport of goods by road. These services are not provided as independent services but as ancillary to the principal service, namely, trans....
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....portation of goods by road. The invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In view of this, if any intermediary and ancillary service is provided in relation to transportation of goods by road, and charges, if any, for such services are included in the invoice issued by the GTA, such service would form part of the GTA service....
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.... and would not be treated as a separate supply. In fact, any service provided along with the GTA service that is part of the composite service of GTA shall be taxed along with GTA service and not as separate supplies. However, if such incidental services are provided as separate services and charged separately, whether in the same invoice or separate invoices, they shall be treated as separate sup....
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....plies. With Regards. V.P.Batra Reply By KASTURI SETHI: The Reply: Dear Batra Ji, W.r.t. above query at serial no. 2 dated 13.4.20, you need to through the definition of Cargo Handling Services deeply and word for word. Cargo Handling Service is not part of GTA. Both cannot be intermingled. To qualify as composite services, one or more services or goods or both must be naturally bundled. In y....
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....our example of FAQ issued by Board, do you find any word/words, "Cargo Handling Services" in the answer ? "Cargo Handling Services' fall under the category of "Supporting Transport Services" under SAC 9967 but both services are not naturally bundled. Examples of Cargo Handling Services are : (i) Services provided in relation to cargo handling by the Container Corpo....
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....ration of India, Airport Authority of India, Inland Container Depot, Container Freight Stations etc. There are several other firms which provide Cargo Handling Services. This service has very wide scope. It does not include mere transportation of goods. This does not include passenger baggage and unaccompanied baggage. Reply By KASTURI SETHI: The Reply: From your query it appears that you want t....
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....o pay tax in respect of Cargo Handling Service @5% which is meant for GTA. That is not possible. GTA is ancillary to Cargo Handling Service and NOT vice versa. In thiis scenario, principal service is Cargo Handling Service.<br> Discussion Forum - Knowledge Sharing ....