Taxability of service

[Mujahid Khan]

Dear Sir

My brother is engaged in transportation of soil from mining area to brick fields and he does not connected with any other business on mining area.

Is his service is exempt under GST because he is providing only transportation services not other mining services.

Another issue is that he is going to purchase a new transportation vehicle(Dumper). Can he claim ITC for another business vertical he owns.

[Ganeshan Kalyani]

Transportation service is exempted under GST. The service of transportation service provided by Goods Transport Agency (GTA) is taxable under reverse charge basis.

[YAGAY andSUN]

In addition to above reply, ITC on Dumper/Tipper/Forklift/Hydra are allowed for movement of goods, provided output service comes under the purview of GST i.e. output services should be taxable services.