TaxTMI 
TaxTMI 
Petrol bunk also giving transport service - whether liable for GST collection
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....etrol bunk also giving transport service - whether liable for GST collection<br> Query (Issue) Started By: - JayachandaS andCo Dated:- 26-9-2025 Last Reply Date:- 5-10-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>A petrol bunk is registered under GST and also owning a truck which they use to bring fuel from the IOCL only for their bunk and IOCL is giving hire charges and they are p....
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....aying RCM @5%. Now the question is, being a registered dealer, should the petrol bunk charge 18% GST under FCM method? Reply By Sadanand Bulbule: The Reply: Definition of GTA: As per Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, Explanation (a): "Goods Transport Agency" means any person who provides service in relation to transport of goods by road and issues a consignmen....
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....t note, by whatever name called. Thus issue of consignment note is mandatory to qualify as GTA. (b) Exemption for Non-GTA Road Transport. Sl. No. 18 of Notification 12/2017-CT(R): Services by way of transportation of goods by road, except the services of- (a) a goods transport agency; or (b) a courier agency; are exempt from GST. Thus, if no consignment note is issued ? transport se....
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....rvice is exempt. (c) Reverse Charge Mechanism (RCM) for GTA- Notification No.13/2017-CT(R), dated 28.06.2017, Sl. No. 1: In case of GTA supplying services to specified recipients (including a body corporate like IOCL), the recipient of service is liable to pay GST under RCM @ 5%. (d) Forward Charge Mechanism (FCM) Option for GTA- As per Notification No. 20/2017-CT(R), dated 22.08.2017, GTA may o....
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....pt to pay GST under FCM. But only if GTA opts for FCM and declares the same. Otherwise, RCM applies. 3. Analysis . 1. If the petrol bunk is issuing consignment note ? qualifies as GTA ? GST payable by IOCL under RCM @ 5% (Sl. No. 1, Notif. 13/2017). Petrol bunk should not charge 18% GST. 2. If the petrol bunk is not issuing consignment note ? not a GTA ? covered under Sl. No. 18 of ....
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....Notif. 12/2017 ? transport by road (other than GTA/courier) is exempt. Again, petrol bunk should not charge GST (neither FCM nor RCM). 3. Charging 18% GST under FCM does not arise, because: Transport of goods by road (non-GTA) is exempt. Reply By Sadanand Bulbule: The Reply: Dear Sir Since petrol is not under GST yet, the product (fuel) itself is not a GST goods. But the ser....
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....vice of transport (i.e. moving goods/fuel by road) might still attract GST under GTA provisions (if other conditions are met, especially issuing consignment note etc.). However, even with GST-2.0 reforms, there's no change in "fuel transport for own bunk" or "transport of petroleum products" that alters the basic GTA framework, except the rationalisation of rate of tax.--5 % tax without ITC OR 18....
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....% tax with ITC. Just for kind information Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, As per the query, the Petrol Bunk Owner transports fuel from IOCL using his own truck, but receives charges from IOCL. This amounts to "supply of service" u/s 7. The truck owner is not liable to collect tax as per the provisions explained by Sri Sadananda Bulbule Sir. As such, IOCL is required to ....
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....pay tax under RCM at the prescribed rate. If ITC is not availed, 5% of tax is payable. If ITC is availed in their transactions, a 12% rate applies. Reply By Shilpi Jain: The Reply: If IOCL is paying GST under RCM @5% then no further payment by bunk owner. Hope the bunk owner issues a consignment note for the transportation of fuel. If not, better to raise in order to avoid any disputes in fut....
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....ure. Reply By KASTURI SETHI: The Reply: In this context also peruse the following FAQs issued by C.B.E. & C. and Commercial Taxes Departments of States/Union Territories on 5-1-2018 :- Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees d....
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....uring last year. Am I supposed to take registration? Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017. Q2. I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease in....
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....come attract GST? Ans. Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry No. 22 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, The tax exemption is for the transportation of goods by road. In this case, it is related t....
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....o the supply of service. In my view, the supply of service is not exempted. <br> Discussion Forum - Knowledge Sharing ....