12 January 2019
XYZ (Manufacturer) have a commercial vehicle for transportation of goods and wants to provide the vehicle on hire to PQR(Manufacturer) for the transportation of Goods and for which there will be a monthly billing on the basis of number of trips and locations where the goods have been transported. Both are in the same state. 1) What will be Rate of GST to be charged on the Invoice by XYZ to PQR? And 2) The nature of Service (Whether this can be treated as GTA service or not?).
12 January 2019
Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name it is called. I dont think any consignment is being issued in the present scenario, and hence the service is not of goods transport agency. In the present case it has to be decided that whether the service is renting of movable property, or the service is transportation of goods. From the billing structure, it appears that driver, fuel, insurance etc. are cost which shall be borne by transporter. Further billing shall be done on the basis of number of trips, distance traveled etc. In view of this it is not renting of movable property; and the service is transportation of goods by road. When such service is provided by a person, not being a goods transportation agency, it is exempted vide Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.18).
CAclubindia
