Home Case Index All Cases GST GST + AAR GST - 2020 (6) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 520 - AAR - GSTClassification of services - GTA services for RCM - person unregistered with GST, providing road transport services by his own truck - issuance of E-way bill by or to road transporter who is unregistered with GST, providing road transport services by his own truck - to be treated as consignment note for GST-RCM purposes - person unregistered with GST providing road transport services by hiring trucks from third party, to applicant - issuance of E-way bill by or to road transporter who is unregistered with GST providing road transport services by hiring trucks from third party - to be treated as consignment note for GST-RCM purposes. HELD THAT:- The concept of Mechanism (in short 'RCM) is incorporated under UM wherein the Government has notified not only supply of certain services but also supply of certain goods under RCM. Under RCM the liability to pay tax is fixed on the recipient of supply of goods or set vices instead of the supplier or provider - As per the provisions of section 9(3) of Act, the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both A list of goods on which GST is payable under section 9(3) of the Act is given in the Notification No. 4/2017-Central Tax (Rate) dated 28.06.2017 and the category of services on which tax is payable is enumerated in the Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017. On perusal of Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017, the services rendered by the 'Goods Transport Agency” in short (GTA) falls under 'Reverse Charge Mechanism'. The services provided by “GTA” in respect of transport of goods by road is a taxable event. As per Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, ''goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called - consignment note' has not been defined in the Act or in the Notification either. In this context we take the help of Explanation to Rule 4B of Service Tax Rules, 1994 wherein the ''consignment note' has been defined as a document provided by a goods transport agency against the receipt of goods for the transport of goods by roadways in a goods carriage. Form 2.1 may be treated as consignment note, thus the condition of OTA is fulfilled and thus the services procured from unregistered person for transportation of goods full under the definition of OTA and the applicant is liable to pay GST on the same under ROM.
|