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TMI Blog2020 (4) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... ed - In the instant case of the appellant, if the lien of the goods is transferred and the appellant becomes responsible for the goods till its safe delivery to the consignee, the services will be classifiable as goods transport agency services and issuance of consignment note or its non-issuance does not make any difference so far as the nature of the activity carried out by them is concerned. Mere non-issuance of the consignment note in such cases does not make them entitled for exemption from payment of GST. However. if the vehicles are provided to the client on rental for use as per their requirement, the services will be classifiable as rental services of transport vehicles'. The nature of activity carried out by them is independent of the format of e-way bill rather e-way bill format has no connection whatsoever, with the nature of activities undertaken. In any case, mere non-requirement of mentioning of any detail in E-way Bill does not affect liability of payment of GST on any service unless the service has been exempted through an exemption Notification issued by the Government - the contentions of the appellant concerning format of e-way bill are not relevant to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication dated 12.06.2019 before the Rajasthan Authority for Advance Ruling and sought Advance Ruling on the following questions:- (i) Does Transportation by own vehicles on the basis of Invoice(s) and E-way Bill without issuing the consignment note by the Appellant Transporter will covered under exempted supply/ non GST supply. (ii) Does Rule 42 of the CGST Rules 2017 will also apply in case where there is GST and Non GST Supplies and there is a common consumption of input and input services? 3.3 The Rajasthan Advance Ruling No. RAJ/AAR/2019-20/ 19, dated 29.08.2019 = 2019 (10) TMI 668 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN , have decided the aforesaid application, wherein it has been held that- (i) The appellant is a registered GTA Service provider under GST and is not exempted from paying GST. (ii) 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 pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the matter was held on 04.11.2019. Sh. Alok Kumar Kothari, Advocate, authorized representative or the appellant, appeared for personal hearing on 04.11.2019. He reiterated the submissions already made in their appeal memorandum. He had nothing further to add. DISCUSSION AND FINDINGS 7. We have carefully gone through the appeal papers filed by the appellant, the Advance Ruling pronounced by the Rajasthan Authority for Advance Ruling and Written as well as Oral submissions made by the authorized representative of the appellant at the time of personal hearing held on 04.11.2019. We find that the appellant vide its application dated 12.06.2019 filed before the Rajasthan Authority for Advance Ruling, had requested for Advance Ruling on the following two points:- (1). Does Transportation by own vehicles on the basis of Invoice(s) and E-way Bill without issuing the LR/GR by the Applicant Transporter Will covered under exempted supply/ non GST supply ? (2). Does Rule 42 of the CGST Rules 2017 will also apply in case where there is GST and Non GST Supplies and there is a common consumption of input and input services ? 8. In pursuance of the aforesaid a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portal the E-Way Bills are being generated without having consignment note / LR/GR. Since there is no consignment note issued, thus, the services are out of the purview of GST and will categorize as non-taxable service/ non-GST supply.. 11. The appellant/applicant, vide its application dated 12.06.2019 filed before the Rajasthan Authority for Advance Ruling, had stated that the appellant is a service provider having its registered office at Jaipur, Rajasthan, and providing 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. The Appellant further stated that he has entered into agreement with various parties and will be providing transportation services with own vehicles but without having LR/GR. The appellant sought Advance Ruling as to whether transportation by own vehicles on the basis of Invoice(s) and E-way Bill without issuing the LR/GR by the Appellant Transporter will covered under exempted supply/ non GST supply. The appellant, in the appeal memorandum described the activity to be undertaken as under: (i) That the appellant is providing a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial to the place of the exporting units. In such a situation, we find that Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), at S. No. 9, 10 11, specifies rate Of the Central Tax, on the intra-State supply of services related to Goods Transport as under: Sr.No. Chapter Section or Heading Description of Service Rate (per cent) conditions 9 Heading 9965 (Goods transport services) (i) Transport of goods by rail (other than services specified at item no. (iv)). 2.5 Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service (ii) Transport of goods in a vessel. 2.5 Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iv)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and issues consignment note, by whatever name called. We find that, 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 transportation of the goods till its safe delivery to the consignee. In such a situation, consignment note or any other document, by whatever name called, is simply a document showing the responsibility of the transporter and the rights of the persons for whom the goods are transported. By implication, it means that the transporter undertakes the responsibility to transport the goods and promises safe delivery of the goods at the destination. A consignment note is only a document by which the responsibilities and rights are reduced in writing and, therefore, existence or for that matter, absence of the said document cannot have any adverse effect on the responsibilities or rights as agreed between the parties. 13. We find that the appellant simply described the activity to be undertaken as under: (i) That the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the vehement argument of the appellant that they will not be issuing consignment notes. The main activity involving vehicles of the appellant which will be used for transport of goods by road has been mentioned by the appellant in the appeal but they have mentioned nothing about any other activities which may be required in connection with the main activity of the appellant. In that case, such other activities will be covered under Supporting services in transport' mentioned at Sl. No. 11 of Notification No. 11/2017-central Tax (Rate) Date 28.06.2017 (as amended from time to time), as the case may be, as per the exact nature of activities undertaken or services provided by them. 14. We find that the appellant is claiming on its official website (www.kmtrans.in) that they are serving about 90% of car makers viz. Maruti Suzuki, Toyota, Tata, Hyundai, Mahindra etc., are having Fleet Size of 1250, 35 branch offices, 32 loading stations, 80 service support. From this, it is clear that the appellant transporter is not from unorganized sector of transporters and has a vast network all over India for transportation of goods. They are providing services to various manufacturers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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