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TMI Blog2019 (11) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... n is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of Case: The applicant informed that he was registered as a GST regular dealer in the name and style of Chitra Transport at Vijayawada and their activity is to engage lorries from lorry owners to provide transport facilities to their customers, while acting as agent between their customers, who require transport facility and lorry owners. The applicant states that after collecting the transport charges from his customers, he pays the requisite amount payable to the lorry owners, keeping some commission with him, for having arranged the transport facility to the customers. The applicant had filed an application in form GST ARA-01, dt: 27.02.2019, paying the prescribed amount of fee for seeking Advance Ruling. On Verification of basic information of the applicant, it is observed that the applicant falls under Central jurisdiction, i.e. Amaravathi Capital City range, Amaravathi CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28.06.2017 is as follows: (ze) "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; Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplier of service to be considered as a Goods Transport Agency. If such a consignment note is not issued by the transporter, the service provider will not come within the ambit of goods transport agency. If a consignment note is issued, it indicates that the lien on the goods has been transferred (to the transporter) and the transporter becomes responsible for the goods till it's safe delivery to the consignee. It is only the services of such GTA, who assumes agency functions, that is being brought into the GST net. Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. As a corollary, the services provided by such individual transporters who do not issue a consignment note will be covered by the entry at s.no.18 of notification no.12/2017-Central Tax (Rate), which is exempt from GST. 6.3 Definition of Consignment note Consignment No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ischarging the tax liability is entitled to take Input Tax Credit (ITC) of the amount of tax paid under reverse charge, provided it is used in the course or furtherance of business at his end. Further the recipient would be eligible for ITC of the GST paid by GTA on forward charge basis. Notification no. 11/2017-Central Tax (Rate), sr.no.11, (ii) also provides that supporting services in transport other than those mentioned in (i) (Heading 9967) would attract GST @ 9% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 18%. Similar rate has been prescribed for services falling under heading 9965 in terms of notification no. 11/2017-Central Tax (Rate), sr.no. 9 (v). 6.5 Person Liable to Pay GST on GTA services The liability to pay GST devolves on the recipients for supply of services by a goods transport agency (GTA) who has not paid central tax at the rate of 6%, in respect of transportation of goods by road(in terms of notification no. 13/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.1) as amended by notification no. 22/2017-Central Tax (Rate) dated 22.08.2017, if the recipients (located in the taxable territory) belong to the following c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt agency, a means of transportation of goods. Thus, if the GTA hires a means of transportation of goods, no GST is payable on such transactions. 6.7 The use of the phrase 'in relation to' has extended the scope of the definition of GTA. It includes not only the actual transportation of goods, but any intermediate/ancillary service provided in relation to such transportation, like loading/unloading, packing/ unpacking, trans-shipment, temporary warehousing, etc. If these services are not provided as independent activities but are the means for successful provision of GTA Service, then they are also covered under GTA. In respect of those who provide agency services in transport, the liability is cast on the recipients in most of the cases or unless option to pay under forward charge has been exercised by the GTA. 6.8 In view of the legal provisions governing the taxability of GTA services, the documents furnished by the applicant are examined and found that; * The applicant is registered with GST as a service provider; * The applicant is issuing lorry receipts (LR in brief) under the name & style M/s. Chitra Transport, containing details of GST registration, truck number, date ..... 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