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2022 (4) TMI 47 - AAR - GSTLevy of GST - parcels of Ashapura that are being transported by GSRTC - exemption in terms of Sr. No 18 of Notification No 12/2017-Central Tax (Rate) whereby GSRTC is transporting parcels of Ashapura, but is neither GTA nor courier agency - rate of GST - SAC code for the transportation of goods by Road other than courier and GTA provided by GSRTC - requirement of service recipient to make payment of tax instead of service provider - applicability of N/N. 13/2017-Central Tax (Rate) - HELD THAT - GSRTC provides services to such firms/ agencies (its service recipients) carrying on the business of transportation of parcels, specific allied services. GSRTC is agreed that it itself is not a courier agency as it is not engaged in door to door transportation of goods/articles/documents. It is a fact on record that Ashapura is engaged in door to door transportation of its parcel goods but not GSRTC. It is found from the agreement is that GSRTC s services to Ashapura is supporting the business of Ashapura, by transporting the parcels of Ashapura from one destination to other, wherein Ashapura is both the consignor and consignee at the respective bus stations. Ashapura utilises the services of GSRTC for enabling it ( Ashapura) for door to door delivery of parcels - the specific activity of GSRTC supplying parcel office space/cabin/shed to Ashapura falls under the category of infrastructural support services which is a subset of Business Support Services. Thus, GSRTC is not a Courier Agency as it is not involved in door to door transportation of goods/articles/documents. It is noted from Notification 11/2017- CT (R), a 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. In present case, GSRTC is providing service in relation to transport of goods by road and GSRTC issues parcel receipt. Thus, GSRTC supplies Business Support Service to its recipient - SAC is 998599, covering Other Support Services n.e.c.; GST rate being 18% - GSRTC is neither a GTA nor a courier agency.
Issues Involved:
1. Whether GST will be applicable on the parcels of Ashapura that are being transported by GSRTC. 2. Whether GSRTC is eligible to avail exemption in terms of Sr. No 18 of Notification No 12/2017-Central Tax (Rate) whereby GSRTC is transporting parcels of Ashapura, but is neither GTA nor courier agency. 3. What will be the rate at which GST is required to be charged by GSRTC if it is held that GSRTC is not eligible for exemption. 4. What will be the SAC code for the transportation of goods by Road other than courier and GTA provided by GSRTC. 5. Whether the tax, in case it is required to be paid, will be covered under Notification No 13/2017-Central Tax (Rate) whereby the service recipient is required to make payment of tax instead of the service provider. Detailed Analysis: 1. GST Applicability on Parcels Transported by GSRTC: GSRTC is engaged in transporting parcels for Ashapura by providing space in its buses. GSRTC does not issue consignment notes and is not involved in door-to-door delivery. The parcels are transported from one station to another along GSRTC’s bus routes. GSRTC contends that its activity is exempt under Sr. No 18 of Notification No 12/2017-Central Tax (Rate), which exempts services by way of transportation of goods by road except services of a goods transportation agency (GTA) or a courier agency. 2. Exemption Eligibility under Notification No 12/2017-Central Tax (Rate): GSRTC argues that it is neither a courier agency nor a GTA. A courier agency involves door-to-door transportation of time-sensitive documents, which GSRTC does not perform. Instead, Ashapura handles the door-to-door transportation. GSRTC merely provides transportation of goods from one location to another without any responsibility for the parcels’ contents or their timely delivery. GSRTC also does not issue consignment notes, which is a requirement for a GTA. Therefore, GSRTC claims that its activities should be exempt under the specified notification. 3. GST Rate if Exemption is Not Applicable: If it is determined that GSRTC is not eligible for the exemption, the applicable GST rate needs to be determined. The authority finds that GSRTC provides Business Support Services to Ashapura, which involves supporting Ashapura’s business of door-to-door parcel delivery by transporting parcels between bus stations. The SAC code for these services is 998599, which covers Other Support Services n.e.c., and the applicable GST rate is 18%. 4. SAC Code for Transportation of Goods by Road: GSRTC’s activity of transporting parcels is classified under SAC code 998599, which pertains to Other Support Services n.e.c. This classification is based on the nature of the service provided, which supports Ashapura’s business rather than being a direct goods transportation service. 5. Tax Payment Responsibility under Notification No 13/2017-Central Tax (Rate): Since GSRTC is neither a GTA nor a courier agency, the provisions of Notification No 13/2017-Central Tax (Rate), which pertains to reverse charge mechanism for services provided by a GTA, do not apply. Therefore, GSRTC is responsible for paying GST on the services it provides. Conclusion: The authority concludes that GSRTC supplies Business Support Services to Ashapura, and these services are classified under SAC code 998599 with an applicable GST rate of 18%. GSRTC is neither a GTA nor a courier agency, and therefore, the exemptions under Sr. No 18 of Notification No 12/2017-Central Tax (Rate) do not apply. The responsibility for paying GST lies with GSRTC, not the service recipient.
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