GST ON SERVICE PROVIDED BY TRUCK OWNER TO GTA, Goods and Services Tax - GST

[NAMAN DOKANIA]

A Truck Owner-cum-transporter registered in GST provides his truck on hire to GTA (who issues consignment note)(unregistered) who inturns provide service to Manufacturing company. Will the truck owner need to charge GST??

Posts / Replies

[Shilpi Jain]

The services of the truck owner are exempt

[KASTURI SETHI]

Dear Querist,

Pl. go through the following FAQs. released by Board on 5.1.18:-

Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?

Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Q2. I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease income attract GST?

Ans. Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry No. 22 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.

Thus there is no doubt about exemption in this scenario.