TaxTMI 
TaxTMI 
2025 (6) TMI 504
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....exempt from levy of GST? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the OGST Act. 2.0 Submission of the Applicant 2.1 M/s Shreyans Logistics Private Limited (hereinafter referred to as "Applicant") is registered under the GST vide GSTIN: 21AAKCS7924C1ZJ with its principal place of business located at 2nd Floor, B/1482, Sector 6, C.D.A, Cuttack, Odisha, 753015. The Applicant has expressed interest to enter into the business of "Vehicle Leasing and Logistics Management Services". For the purpose of rendering the said services, applicant would either procure or lease the electric or non-electric vehicles with the following business objectives: (a) To provide integrated, efficient, seamlessly supervised and coordinated leasing of goods transport vehicles / trucks to GTAs looking for managed services in such space. (b) To manage and supervise the transportation of goods by road undertaken by ....
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....ire" or leasing / rental services of goods transport vehicles / trucks. The recipient of services / GTA has effective right to ply the vehicles and adequate control over such vehicles for controlling its operations in respect of services of goods transport agency, thus making the applicant's services to be "giving on hire" entailing exemption from levy of GST under Sl. No. 22 of Notification No. 12/2017-CT(R) dated 28 June 2017. 2.5 Submission of Jurisdictional Tax Authority: The Jurisdictional Tax Authority commented that taxpayer is primarily leasing vehicles to the GTAs without operators and cost of fuel is born by the recipient of services, not by the Applicant though refueling of the transport vehicles would be undertaken by the Applicant Taxpayer. The Applicant also provides other ancillary services like management which includes repair/maintenance and supervision of transportations of goods by the GTAs in respect of the leased vehicles. The question raised in the said Advance Ruling application by the taxpayer company is not pending or decided in any proceedings under any of the provisions of the Act in respect of the State Tax Authorities. 2.5.1 The Applicant is su....
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....fueling of the transport vehicles would be undertaken by the Applicant Taxpayer. The Applicant also provides other ancillary services like management which includes repair/maintenance and supervision of transportations of goods by the GTAs in respect of the leased vehicles. 4.3 The Applicant has submitted "Vehicle Leasing and Logistics Management services agreement with M/s Orissa Bengal Transport Company on dated 08.01.2025". From the said agreement, it is observed that Applicant (Lessor) is in the business of leasing / renting out electric and non-electric vehicles suitable for goods transport purposes to Goods Transport Agencies (GTAs) with a focus on quality control and operational efficiency. The relevant extracts of the agreement dated 08.01.2025 is as below: (i) The Lessee shall pay the Lessor consideration in lieu of vehicle leasing and logistics management for the Vehicles on monthly basis. The Lessee shall pay the consideration on or before the 5th day of every month until the Lease Term expires or is terminated. The consideration shall cover all costs, including any initial down payments, insurance, periodic maintenance and any other cost incurred in nature i....
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....unctionality and safety. The Lessee shall promptly inform the Lessor of any significant issues regarding the vehicles' operation, safety, or condition. In case of vehicle breakdowns or accidents, the Lessee shall immediately inform the Lessor and follow the procedures established for resolving such issues. (x) The Lessor shall maintain comprehensive insurance coverage for the vehicles, including collision, theft, and third-party liability insurance, and shall provide evidence of such insurance to the Lessee upon request. The Lessee assumes full responsibility for any damages or losses that occur while the vehicles are in the Lessee's possession, except where the damage is attributable to the Lessor's negligence. (xi) The Lessor shall ensure that the Vehicles are free of encumbrances and that the Lessor holds full legal title to the Vehicles, enabling the Lessee to lease the vehicles without restriction. (xii) Upon termination, the Lessee shall return the Vehicles to the Lessor in good condition, subject to reasonable wear and tear. 4.4 On going through submission of applicant, agreement executed between applicant & M/s Orissa Bengal Transport Company a....