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2022 (6) TMI 462 - GST
Liability of GST - person liable to pay GST for transportation of goods of customers located by an independent agency engaged by the applicant - refrigerated vehicles used for transportation of the applicant’s goods travelled back on return journey, after unloading and delivering the applicant’s goods at the destination - person liable to GST for transportation of goods of the customers located by an independent agency when the vehicles used for transportation of the applicant’s goods are used for further transportation, after unloading the applicant’s goods at the destination of the applicant’s branches or depots - person liable to pay GST in respect of goods transport agency service used for bringing back empty plastic trays belonging to the applicant from various places (like branches or depots) to the applicant’s premises - Availment of Input Tax Credit of the entire amount of GST paid on the transaction of the applicant’s goods in refrigerated vehicles although such vehicles travel empty (i.e. without the applicant’s goods being loaded therein) during the return journey.
HELD THAT:- The Serial no 1 to the Notification 13/ 2017-CT (R) dated 28-6-17 reads that the GST liability for supply of service by a GTA in respect of transportation of goods by road to a registered person shall be paid by the recipient of such services. We find M/s Vadilal liable to GST under RCM for the GTA service supplied to it.
As per GST scheme of law, consignment note issuance, by whatever name called, is mandatory for a GTA. The issuance of consignment note indicates that the lien on goods has been transferred to the transporter and the transporter becomes responsible for the goods till its safe delivery to the consignee. This aspect is evident in the relationship between Vadilal and its GTA but is absent in the relationship between Vadilal and Celcius - the requirement of consignment note issuance by a GTA cannot be brushed aside - there are no merit to deem Vadilal as a GTA.
Person liable to pay GST for transportation of goods of customer of Celcius (an independent agency engaged by Vadilal) - HELD THAT:- Vadilal has no locus standi, vide Section 95 CGST Act, to seek Ruling on the tax liability for a transaction entered between M/s Celcius and its (Celcius’s) customers, wherein Celicus is the service provider and its customers are the service recipient - Section 103(1) CGST Act, which reads that Advance Ruling shall be binding only on the applicant who had sought it and on the concerned officer/ jurisdictional officer in respect of the applicant. In this case, our Ruling is binding on the Vadilal. This subject Ruling, vide Section 103(1) CGST Act is not binding on Celcius and its service recipients. Further, Section 95(a) CGST Act defines advance ruling as a decision provided in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.