Analyzing GST Implications on Free of Cost Supplies in Service Agreements: A Case Study

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....vices Tax (GST) in India. The core issue revolves around whether diesel provided Free of Cost (FOC) by a service recipient to a Goods Transport Agency (GTA) should be included in the taxable value of the GTA service for GST purposes​​. II. Factual Background and Legal Challenge The petitioner filed a petition challenging the orders dated February 28, 2022, passed by the Appellate Aut....

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....anced interpretation of what constitutes 'consideration' for a supply under GST. The legal question is whether the provision of FOC diesel can be considered a non-monetary consideration that should be included in the taxable value of the service provided by the GTA. * Contractual Terms and Tax Liability: The case also highlights the interplay between contractual arrangements and statut....

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..... IV. Conclusion and Implications Till the petition was filed, no National Appellate Authority was notified. However, this Court cannot direct the State to legislate on the doctrine of separation of powers. In view of the observations made in foregoing paragraphs the initial order passed by the AAR on 04.01.2021 shall revive and it is observed that though the diesel was provided free of cost by ....