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TMI Blog2019 (11) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... ption to pay under forward charge has been exercised by the GTA. As per the lorry receipts issued by the applicant, he is rendering Goods Transport Agency services and his tax liability under GST law is The rate of tax on the GTA services is 5% (2.5% CGST + 2.5% SGST) subject to satisfying the conditions as prescribed under notification no. 11/2017 - CT (Rate) dated 28.06.2017 as amended by notification no. 20/2017-CT (Rate) dated 22.08.2017 - In case, the said conditions are not satisfied, the rate of GST is 12% (6% CGST +6% SGST) and the applicant being the provider of Goods Transport Agency service has to pay the said tax. X X X X Extracts X X X X X X X X Extracts X X X X ..... ax payable? 5. Record of Personal Hearing: The applicant, Balasubramanyam Saravana Perumal, Prop: M/s. CHITRA TRANSPORT appeared in person for Personal Hearing held on 03.04.2019 and he reiterated the submissions already made in the application and requested to pass necessary orders. On being advised he provided sample copies of lorry receipts issued by them and also a list containing names of their customers vide their letter dated 13.06.2019. 6. Discussion and Findings 6.1 We have gone through the case records of the application written and oral submissions at the time of Personal Hearing carefully. The applicant informed that they are engaged in providing arrangement of lorries for transport of goods to their customers on commission basis. The matter represented before us i.e. the activity of providing transport of goods by road service attract GST or otherwise and also rate of tax, is examined. 6.2 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) by road except the services of: (i) a goods transportation agency; (ii) a courier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) (Heading 9965 &9967 respectively) attracts GST @2.5% or 6% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 5% or 12%. However, the rate of 5% is subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken. The explanation to the notification further clarifies that it shall mean that,- (a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and (b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made there under. GST @ 6% CGST (12% cumulative) is subject to the condition that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TC) @12% (6% CGST + 6%SGST); and if the GTA does not avail this option, the liability to pay GST will fall on the recipients. In all other cases where the recipients do not fall in the categories mentioned above, the liability will be on the supplier of GTA services. 6.6 Details of GTA services specifically exempt: In terms of notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.21), the following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax: Services provided by a goods transport agency, by way of transport in a goods carriage of: (a) agricultural produce; (b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees; (c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty; (d) milk, salt and food grain including flour, pulses and rice; (e) organic manure; (f) newspaper or magazines registered with the Registrar of Newspapers; (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17; * The rate of tax on the GTA services is 5% (2.5% CGST + 2.5% SGST) subject to satisfying the conditions as prescribed under notification no. 11/2017 - CT (Rate) dated 28.06.2017 as amended by notification no. 20/2017-CT (Rate) dated 22.08.2017, as detailed in para 6.4 above; * In case, the said conditions are not satisfied, the rate of GST is 12% (6% CGST +6% SGST) and the applicant being the provider of Goods Transport Agency service has to pay the said tax; * In the case of supporting services in transport other than those mentioned in sl.no. 11 (i) (Heading 9967) & in sl.no. 9 (i) to 9 (vi) of notification no.11/2017 CT (Rate) dated 28.06.2017 would attract GST @ 18% (9% CGST + 9% SGST) and GST rate is 18% (9% CGST + 9% SGST). * Where GST is payable under reverse charge or payable under forward charge, the profit i.e. commission earned by procuring/ obtaining trucks from the owners is not taxable in the hands of GTA (Goods Transport Agency). Accordingly we pass the following order. RULING Query: Does the applicant bound to pay GST on the actual amount of commission retained by him for arranging transport facility to their customers or he has to pay GST on the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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