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TMI Blog2019 (10) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... is not exempted from paying GST and thus liable to pay GST as provided under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) read with Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017 (as amended) - Further, the Rule 42 of the GST Rules, 2017 defines the mechanism of manner of availing Input Tax Credit in cases where input or input services are partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies. Where the goods or services or both used by the registered person partly for effecting taxable supplies including zero-rated supplies and partly for effecting exempt supplies, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies as per provisions and procedure prescribed under Section 17 (2) of GST Act read with Rule 42 of GST Rules, 2017. - AAR No. RAJ/AAR/2019-20/19 - - - Dated:- 29-8-2019 - SHRI J.P. MEENA AND SHRI HEMANT JAIN MEMBER Present for the applicant: Shri Alok Kumar Kothari, Advocate (Authorised Representative) Note: Under Section 100 of the CGST/RGST Act, 2017, an app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for GST and Non GST supply. In addition to it there will be common use of Input services by the applicant. The Rule 42 of the CGST Rules 2017 defines the mechanism of manner of availing Input Tax Credit in cases where input or input services are being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies. The term exempt supply is defined at Section 2(47) of the CGST Act 2017 exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 1 1, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply In the light of the definition of the exempt supply which also includes non-taxable supply Rule 42 provisions will also apply in the applicant case where there is consumption of common input and input services and there is a supply of GST and Non GST supplies. Hence credit will be availed proportionately as per the provisions of Rule 42 ibid. 2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT: Does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are located. The applicant has entered into an agreement with various parties and will be providing transportation services with own vehicles but without having LR/GR and therefore is claiming that the service provided by the applicant will be non GST Supply. B. We find that the transport services to various manufacturers of motor vehicles for carrying their vehicles from the factory to the various cities in India where the authorised dealers are located is a Goods Transport Agency (GTA) Service under GST Act, 2017. The definition of Goods Transport Agency (GTA) under Notification No. 11/2017-Central Tax (Rate) Date 28.06.2017 (as amended from time to time) is as below:- 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. A consignment note is a document issued by a GTA against the receipt of goods for the purpose of transporting the goods by road in a goods carriage. Where a consignment note is issued, it implies that the lien on the goods has been transferred and the transporter of the goods becomes responsible for the goods till it s safe delivery to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 SKD or CKD 5 Recipient not known 6 Line Sales 7 Sales Return 8 Exhibition or fairs 9 For own use 10 Others While going through the above contents of an e-way bill, we find that, the Transport Document Number as mentioned in note above is nothing but goods receipt number. To issue an E-way bill, it is mandatory to mention the transport document number in Part A8, without mentioning the same, e-way bill cannot be issued therefore it is mandatory for GTA to issue the transport document and without issuing LR/ GR/consignment note, goods cannot be transported. Therefore the contention of the applicant of providing service without issuing LR/GR/consignment note is not correct and is not acceptable. In view of the facts examined above, we find that the applicant is a GTA service provider under GST Act and is not exempted from paying GST and thus liable to pay GST as provided under Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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