TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 430
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....ts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. B2B Trucks (P) Ltd., No. 23/Flat No.3, Mayflower Apartment, First Floor, Satyanarayana Avenue, R A Puram, Chennai, PIN Code 600028. (hereinafter called as the "Applicant") are registered under the GST Act with GSTIN 33AALCB2798J1Z9. The applicant has sought advance ruling on the following question: "Requesting for GST exemption in respect of an escrow deposit account to be opened and operated by them solely to facilitate forwarding of freight amounts as deposited by shippers to the accounts of carriers without any deduction." 2. The Applicant has made a payment of application fees of Rs. 5,000/- each under sub rule (1) of Rul....
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....livery), without any charge or mark up. When the Members enquired about the consideration they would be receiving for rendering such service, they replied that they receive an amount of Commission from the shippers and carriers, on which GST is payable. 6. Discussions and Findings: 6.1 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts and the applicant's submission/interpretation of law in respect of the question on which a ruling is sought. 6.2 Regarding the business model adopted in the instant case by the applicant, it is seen that they have stated that they operate an online portal to facilitate connecting shippers and carriers located across all states of India, without directly undertaking any responsibility for the physical movement of goods. After paying major portions of freights directly to carriers, the shippers deposit the balance amounts of the freight into their escrow account for forwarding it in full to the carrier's accounts upon their fulfilling deliveries. The applicant report....
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....payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" 6.5 Under the 'statement of relevant facts' in the application, the applicant states that for facilitating transfer of funds as received, without any charge or mark up or deductions or utilization, they receive subscriptions from shippers and carriers. In this regard, when the Members raised a specific query during the personal hearing held on 7.10.2025, as to whether they act ....
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....ight services rendered by the carrier to the shipper, it is clear the said freight amount held by the applicant is not in respect of any supply of goods or services or both by the applicant, in any manner. Accordingly, the balance amount held by the applicant cannot be considered as a 'consideration' from the perspective of the applicant. 6.7 Notwithstanding the same, even in the event of considering the deposit as 'consideration', it is seen that the proviso to Section 2(31) of the CGST Act, 2017, which defines the term 'consideration', reads thus, "Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" And it signifies and conveys the fact that even in cases where a deposit is made, and even when the said deposit is in respect of supply of goods or service or both, the said deposit is not to be considered as 'consideration', until and unless the supplier applies/treats such deposit as consideration for the said supply. It therefore becomes clear that the balance freight amount involved herein which is h....