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TMI BlogGTA PROVIDING SERVICES TO GTAX X X X Extracts X X X X X X X X Extracts X X X X ..... A GTA -1 is taking services from truck operators and is providing trucks on hire to another GTA-2 and then the same is being providing to factory owner. The tax is being paid by Factory owner on bill raised by gta-2 on reverse charge. Do GTA-1 need to raise any GST bill to GTA-2?? - Reply By atul rathod - The Reply = Its an exempted service. Not required to raise GST bill Service by way of giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing hire to GTA a means of transportation of goods. - Reply By SHARAD ANADA - The Reply = This transaction is Nil rated. See entry 22(b) of Notification 12/2017 amended from time to time - Reply By Ganeshan Kalyani - The Reply = GTA 1 is not providing GTA service. He is supplying vehicle for renting. In my view, the supply of vehicle service is taxable. - Reply By KASTURI SETHI - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Dear Querist, I agree with the views of Sh.Ganeshan Kalyani Ji. In this scenario, three persons are involved and two transactions are involved. Truck operator to GTA-1 and GTA-1 to GTA-2. For example ; suppose truck operator is 'A'. 'A' has supplied truck on hire basis to GTA-1 ( suppose -'B') and 'B' has supplied truck to GTA-2 ( suppose-'C' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;) . A's supply to B is exempted as detailed by my colleague experts. This transaction (A to B) is not in dispute. B has arranged supply of vehicle to C and obviously he has got rental charges or commission for that from C. We can term these charges as consideration (may be in the form of commission /ren t/profit, whatever the case may be the case). This consideration has been received by B fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om C on account of taxable supply .This transaction conforms to the definition of 'supply' as per Section 7 of CGST Act , 2017 which is extract below:- SECTION 7 . Scope of supply. - (1) For the purposes of this Act, the expression supply includes - (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental , lease or disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osal made or agreed to be made for a consideration by a person in the course or furtherance of business; Thus B (GTA-1) will raise tax invoice to C (GTA-2) because A has received consideration either as rental charges or commission charges. If B has got commission, his activity will fall under the category of 'intermediary service' and if B has got rental charges, this very activity wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l fall under the category of 'Right to Use of Tangible Goods'. So it depends upon the nature of agreement between the two that is B and C. I am not aware of the terms and conditions of the agreement. Anyhow GST is to be paid by B. - GTA PROVIDING SERVICES TO GTA - Query Started By: - NAMAN DOKANIA Dated:- 13-10-2019 Goods and Services Tax - GST - Got 4 Replies - GST - Discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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