TMI Blog2020 (10) TMI 1350X X X X Extracts X X X X X X X X Extracts X X X X ..... porter could be brought within the ambit of GTA - it can be seen that issuance of a consignment note is an indispensable condition and is a must for a supplier of service to be considered as a Goods Transport Agency. If consignment note is not issued by the transporter, the service provider will not come within the ambit of goods transport agency. The legal position prevailing under Service Tax is being continued under the GST regime. The services of transportation of goods by road (except services of GTA) continue to be exempt even under the GST regime. In so far as he services of CTA are concerned, if the services (of Goods Transportation) are provided (by the GTA) to specified classes of persons, the tax liability falls upon such reci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der reverse charge mechanism as per Sec 9(3) of Central Goods and Services Tax, 2017? (iv) If the applicant is liable to pay the tax on reverse charge basis, then what is the rate at which tax would be applicable? (v) If the supply is taxable, whether the applicant will be able claim ITC for the GST paid on this supply. 2. Facts of the case:- 2.1 The applicant is a Proprietorship firm based in Chhattisgarh and is already registered under Central Goods and Services Tax Act, 2017 and Chhattisgarh Goods and Services Tax Act, 2017 with GSTIN GSTIN -22ACIPA5817H3ZY. 2.2 The applicant is planning to venture into the Business of Transportation of Goods by Road. 2.3 Under the proposed model, the applicant will provide the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the applicant, no tax rate shall be applicable on the same. 3.5. Since, the supply is exempt in view of the applicant, no ITC can be claimed by the applicant. 4. Personal Hearing:- Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant and accordingly their authorized representative Shri Prakhar Jain, C.A. and Shri Ashish Agrawal (son of the applicant) appeared before the authority for hearing on 17/07/2020 and reiterated their contention. They also furnished a written submission dated 17/07/2020 which has been taken on record. 5. The legal position, Analysis and Discussion:- 5.1 At the very outset, we would like to make it clear that the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Reverse Charge Mechanism and the availment of ITC does not arise. 5.2 The legal position prevailing under Service Tax is being continued under the GST regime. The services of transportation of goods by road (except services of GTA) continue to be exempt even under the GST regime. In so far as he services of CTA are concerned, if the services (of Goods Transportation) are provided (by the GTA) to specified classes of persons, the tax liability falls upon such recipients under the reverse charge mechanism as discussed hereunder. 5.3 In terms of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no. 18), the following services are exempt from GST Services by way of transportation of goods (Heading 9965): (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is in this context, they have sought advance ruling as regards taxability, its classification, rate of tax and eligibility to Input tax credit, on the services of receipt of transportation vehicles on hire from the persons who own such Goods Transportation Vehicle to be used for providing the said services of Transportation of goods. 5.6 As per Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.22), the following services received by the GTA (Heading 9966 or 9973) is exempt from payment of tax. Sl. No. Chapter, Section, Heading, Croup or Service Code (Tariff) Description of Services Rate (per cent.) Condition 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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