TAXABILITY ON GTA TO GTA SERVICE, Goods and Services Tax - GST

[NAMAN DOKANIA]

Sir,

M/s ABC Pvt Ltd is doing transporting business and it is transporting goods on behalf of M/s XYZ limited (Manufacturing Company). Both are registered under GST. M/s ABC Pvt Ltd takes vehicles from Mr. X (Who is hiring vehicles from Individual Truck Operators). M/s ABC Pvt Ltd issues consignment note, and transports goods to Ms XYZ Ltd. M/s ABC Pvt Ltd gets freight from M/s XYZ Limited.

Case 1: M/s ABC Pvt Ltd is charging tax on transporting in their bill.Will service from Mr X to M/s ABC Pvt Ltd will levy any tax ??

Case 2: M/s ABC Pvt Ltd is not charging any tax on transporting in their bill. And M/s XYZ limited is paying tax on reverse charge. Will service from Mr X to M/s ABC Pvt Ltd will levy any tax ??

Posts / Replies

[KASTURI SETHI]

Hiring of vehicle by ABC Ltd. ( as GTA ) from X is exempted vide Notification No.12/17-CT(Rate) dated 28.6.17 (serial no.22 of notification) in both the situations given by you. If you have some other query, post here again.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir, GST is not applicable in this case.