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TMI BlogIntermediary service to GTAX X X X Extracts X X X X X X X X Extracts X X X X ..... An entity is engaged by a GTA for transportation of his client's goods. The said entity sub-contracts the job to truck owners. Is the service of the entity exempted from GST? - Reply By Debtosh Dey - The Reply = I clarify that the entity's service may not be an intermediary service since the job was sub-contracted and there is no commission earning. It's principal-to-principal basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-contract to truck owners for which the entity charges to the GTA on cost plus basis. - Reply By KASTURI SETHI - The Reply = Dear Sh.Debtosh Dey Ji, In the title of query, you have mentioned the word, 'intermediary' ? In the query itself you have mentioned the word, 'sub-contract'. Is it really sub-contracting or outsourcing ? How ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be intermediary ? I think the whole issue revolves around the terms, 'intermediary' 'sub-contracting' 'outsourcing'. Will you please re-phrase the query ? Thanks a lot. - Reply By GUNASEKARAN K - The Reply = Please elaborate your query... - Reply By GUNASEKARAN K - The Reply = Please help to unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rstand your query; 1. Who will give the freight bill / claim / reimburse the freight amount from service recipient i.e.your clients? 2. If truck owners gives freight bill to your clients then what is you role? - Reply By Shilpi Jain - The Reply = Who issues the consignment note for the transportation? Why do you regard service to be exempt? This is not a renting of vehicle to GTA. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vijay kumar - The Reply = Since the entity is itself not engaged in the service by way of transportation of goods by road, no exemption in my view (sl.no.18 of Nofn.12/2017-CT Rate won't apply to such intermediary). If they are charging some commission in the process, same is liable to GST under forward charge. - Reply By Ganeshan Kalyani - The Reply = GTA may be giving service to his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... client. The client will be paying GST under RCM. Further, the GTA has engaged an entity who inturn sub-contracts a truck driver for the purpose of transportation of goods. The truck owner providing transportation of goods service is exempt vide serial no 18 of Notification no. 12/2017-CTR dated 28.06.2017 . The legal entity getting commission (or differential amount i.e. freight charges received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by legal entity from GTA and the freight amount given by legal entity to the truck owner) from GTA is liable to GST. - Reply By Padmanathan Kollengode - The Reply = From the limited facts, I agree with the prima facie views of expert that service of entity in question is not exempt. - Intermediary service to GTA - Query Started By: - Debtosh Dey Dated:- 9-8-2023 Goods and Services Tax - GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Got 8 Replies - GST - Discussion 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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