TMI BlogFAQ ON TRANSPORT & LOGISTICS dated 5-1-2018X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Q3. In my truck, I only carry fruits and vegetables, in relation to whose transportation service GST is exempt; should I take registration? Ans. Services by way of transportation of goods by road other than by a GTA or a courier agency are exempt from tax under entry No. 18 of Notification No. 12/2017-Central Tax (Rate), dated the 28th June, 2017 and thus you are not liable for registration. Q4. I am a truck supplier/broker. My job is to get orders for truck owners. I quote the rate for transportatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, which are provided in the course of transport of goods by road. These services are not provided as independent services but as ancillary to the principal service, namely, transportation of goods by road. The invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In view of this, if any intermediary and ancillary service is provided in relation to transportation of goods by road, and charges, if any, for such services are included in the invoice issued by the GTA, such service would form part of the GTA service and would not be treated as a separate supply. In fact, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crap material etc, on which no Input Tax Credit (ITC) has been taken, are disposed of after completion of their useful life. As a truck owner disposing of these goods, am I required to pay GST considering that no ITC has been taken at the time of their initial purchases? Would levy of tax in such cases not amount to double taxation, as tax has already been paid at the time of initial purchases? Ans. Under Section 7 of the CGST Act, 2017 supply includes all forms of supply of goods such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Sale or disposal of old vehicles, old tyres and scrap material for a consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or invoices are issued. Do all stopovers cause a break in continuous journey? Does the definition of continuous journey include instances whereby the stopover is for any period of time? Ans. The term stopover has been explained in Section 2(3) of the IGST Act, 2017 to mean a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time. However, all stopovers do not cause a break in continuous journey. Thus a travel on Delhi-London-New York on a single ticket with a halt at London will be covered by the definition of continuous journey. However, the return journey of New York-London-Delhi will be treated as a separate journe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be signed or digitally signed for GST purposes? Ans. No. In terms of Rule 54(4) of the CGST Rules, 2017 in the case of passenger transportation service, a tax invoice shall include ticket in any form, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under Rule 46 of the Rules ibid. As the electronic tickets issued by the Airlines are in the global standard format, such electronic ticket receipts are not required to be signed or digitally signed. Q16. Whether the Airlines are required to issue invoice to the customers transaction-wise, (i.e. Airway Bill-wise, Ticket Journey-wise) or a consolidated invoice, capturing the details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by air. Q19. Will Airlines be entitled to Input Tax Credits under the GST transitional rules if the liability to pay service tax arises, due to resolution of litigation or disputes, after implementation of GST? Ans. Yes, Section 142(6)(a) of the CGST Act, 2017 provides that every proceeding of appeal, review or reference relating to a claim for CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of the existing law other than the provisions of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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