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TMI Blog2024 (6) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... efore it is mandatory for the transporter/contractor to issue the transport document which is nothing but a consignment note, without which goods can't be transported. Further, the definition of GTA given at Serial No. ze of Notification 12/2017-Central Tax (Rate) dated 28/06/2017 refers to any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. Thus the document issued by the transporter containing the details as indicated above, in relation to transport of goods, by whatever name qualifies to be a consignment note. Thus the transporter/contractor qualifies to be a Goods Transport Agency and the GST has to be discharged as per the provisions of the CGST Act 2017 and the rules made thereunder read with Notification 11/2017-Central Tax(Rate) dtd 28.06.2017 read with Notification No. 13/2017-Central Tax(Rate) dtd 28.06.2017 by the service recipient. - DR. M.P. RAVI PRASAD AND SRI. KIRAN REDDY T, MEMBER Represented by : Sri N Lokesh Reddy, C A Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s Karnataka Co-operative Milk Producers Feder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t vehicle. The transporters are not issuing any other documents like consignment notes to the units and the transporters will submit the invoices at the end of the month with details of goods transported during the month. 5.3 While raising invoices by the transporters few transporters are raising invoices by charging GST and few transporters are issuing invoices without charging GST and few transporters are issuing invoices by mentioning that the service recipient is liable for payment of GST under reverse charge mechanism (sample copies of invoices enclosed) 6. Applicant's Interpretation of Law: The applicant submitted their interpretation of law inter alia stating as under: 6.1 As per Section 9(3) of CGST Act, 2017 The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person; located in the taxable territory. 6.3 As per the above entry in S. No. 1 of Notification 13/2017-Central Tax rate dated 28/06/2017, any services provided by a GTA (Goods transport Agency) to the parties specified in categories of supplies is liable for RCM. The applicant is falling in one of the categories of service recipients as specified in the list of categories of S. No. 1 of notification 13/2017-central tax rate. The next question that needs to be determined is whether the transporter is a Goods transport agency (GTA) or not. 6.4 Goods transport agency has been defined in serial No. ze of notification 12/2017-Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant the submissions made by their learned representative during the time of hearing. 10. The Applicant submitted that they engage the services of transporters, most of whom are individual truck owners, on selection of them through tender process, for transportation of goods by road, which are broadly classified into the following categories: a) Transportation of raw materials/finished goods from godowns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice copy/ delivery challan, weighment slips, E-way bill copy wherever applicable and the permit required for transportation of goods i.e. molasses. Further, the applicant, in support of their contention, also furnished the copies of agreements made with the transporters for transportation of molasses from the sugar factories and the raw materials between different cattle feed plants, which are in Kannada language and hence the English translated copies of the same were called for. The applicant, vide their letter dated 13.03.2024, submitted the copies of translated contract agreement copies made with the individual truck owners. 14. In view of the above, the issue before us to examine is whether the individual truck owners are covered under the category of Goods Transport Agency or not. In this regard, the copies of contract documents and invoices submitted by the applicant are examined and the following observations are made: Transportation of Mollasses; (i) No compensation will be given by the KMF (Applicant), for the time of halting, during the transportation of Molasses, as the risk / responsibility are lying with the contractor (clause 2 of terms conditions of the contract) ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s /raw material from one Cattle Feed factory Premises (CFP) to another CFP. From the aforesaid terms and conditions, it is seen that the transporter is placed under the obligation for safe custody and delivery of goods. Transporter obtains a lien over the goods for said responsibility. The invoice issued by one of the molasses transport contractor (P. Hariharan Nanda) bearing number 224 dated 10.04.2023 contains the remark on the invoice that GST is paid by the consignee through RCM, under GTA Act . Further we also invite reference to SI.No. ze of para 2 of the Notification 12/2017-Central Tax (Rate) dated 28/06/2017 wherein Goods Transport Agency has been defined to mean any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. 15. Consignment note is neither defined under the CGST/KGST Act 2017 nor under the notification 12/2017 supra. However, the rules 4A and 4B of erstwhile Service Tax Rules 1994 are relevant to the consignment note and the said rules are as under: Proviso 2 to Rule 4A: Provided further that in case the provider of taxable service is a goods transport agency, providing service to any person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Number (A8) under Part-A and Vehicle Number (B) under Part-B. The e-way bill form GST EWB-01 (Rule 138 of CGST Rules 2017) contains the following notes. 1. HSN Code in column A. 6 shall be indicated at minimum two digit level for taxpayers having annual turnover upto five crore rupees in the proceeding financial year and at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year. 2. Transport Document Number indicates Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number. 3. Place of Delivery shall indicate the PIN Code of place of delivery. 4. Reasons for Transportation shall be chosen from one of the following Code Description a. Supply b. Export or Import c. Job Work d. SKD or CKD e. Recipient not known f. Line Sales g. Sales Return h. Exhibition or fairs i. For own use j. Others 18. It is clearly evident from the foregoing notes that an e-way bill must contain the Transport Document Number mandatorily, which is nothing but goods receipt number, under part A.8 of an e-way bill, without which the e-way bill cannot be issued. Therefore it is mandatory for the transporter/contractor to i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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