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2024 (6) TMI 104 - AAR - GSTLevy of GST - services provided by individual truck, owners for transport of raw materials finished goods including loading and unloading - individual truck owners are covered under the category of Goods Transport Agency or not - HELD THAT - The transporter/contractor, in the instant case, admittedly carries supplier's invoice along with e-way bill, as per the provisions mentioned in Notification No. 12/2018-Central Tax dated 07.03.2018, which contain the details of GSTIN of recipient (Al), Place of delivery (A2), Invoice or Challan number (A3), Invoice or Challan date (A4), Value of goods (A5), HSN Code (A6), Reason for transportation (A7) and Transport Document Number (A8) under Part-A and Vehicle Number (B) under Part-B. An e-way bill must contain the Transport Document Number mandatorily, which is nothing but goods receipt number, under part A.8 of an e-way bill, without which the e-way bill cannot be issued. Therefore it is mandatory for the transporter/contractor to issue the transport document which is nothing but a consignment note, without which goods can't be transported. Further, the definition of GTA given at Serial No. ze of Notification 12/2017-Central Tax (Rate) dated 28/06/2017 refers to any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. Thus the document issued by the transporter containing the details as indicated above, in relation to transport of goods, by whatever name qualifies to be a consignment note. Thus the transporter/contractor qualifies to be a Goods Transport Agency and the GST has to be discharged as per the provisions of the CGST Act 2017 and the rules made thereunder read with Notification 11/2017-Central Tax(Rate) dtd 28.06.2017 read with Notification No. 13/2017-Central Tax(Rate) dtd 28.06.2017 by the service recipient.
Issues Involved:
1. Whether services provided by individual truck owners for transport of raw materials & finished goods including loading and unloading are liable for GST. 2. Whether the individual transporters are classified as Goods Transport Agency (GTA). 3. Whether the applicant is required to pay tax under Reverse Charge Mechanism (RCM) on the transportation charges. Summary: Issue 1: Liability of GST on Services Provided by Individual Truck Owners The applicant sought an advance ruling on whether the services provided by individual truck owners for the transport of raw materials and finished goods, including loading and unloading, are liable for GST. The applicant contended that since the transporters do not issue consignment notes, they do not qualify as a Goods Transport Agency (GTA) and thus are not liable for GST under RCM. Issue 2: Classification of Individual Transporters as GTA The applicant argued that individual truck owners do not issue consignment notes and therefore should not be classified as GTA. The definition of GTA u/s Notification 12/2017-Central Tax (Rate) dated 28/06/2017 specifies that a GTA is any person who provides service in relation to the transport of goods by road and issues a consignment note. The applicant provided evidence that the transporters only carry the invoice, delivery challan, and e-way bill but do not issue consignment notes. Issue 3: Requirement to Pay Tax Under RCM The applicant referenced Notification 13/2017-Central Tax (Rate) dated 28/06/2017, which lists services provided by a GTA to specified categories of persons as liable under RCM. The applicant falls under one of these specified categories but argued that since the transporters do not issue consignment notes, they are not GTAs, and thus, the applicant should not be liable to pay GST under RCM. Findings & Discussion: The Authority examined the contracts and invoices provided by the applicant and observed that the transporters are responsible for the safe delivery of goods, which implies a lien on the goods. The transporters issue documents containing details similar to a consignment note, such as the invoice, delivery challan, and e-way bill, which include necessary details like the name of the consignor and consignee, registration number of the goods carriage, and details of the goods transported. Ruling: The Authority concluded that the services provided by individual truck owners for the transport of raw materials and finished goods, including loading and unloading, are liable to GST. The transporters qualify as a Goods Transport Agency (GTA) as they issue documents containing details akin to a consignment note. Therefore, the applicant is required to discharge GST under the provisions of the CGST Act 2017 and the rules made thereunder, read with Notification 11/2017-Central Tax (Rate) dated 28.06.2017 and Notification 13/2017-Central Tax (Rate) dated 28.06.2017.
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