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Composite and GTA

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This query is : Resolved

CA Pawan Koradia (Querist)
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05 January 2022 Sir, We are engaged in a business named Roadlines and selling lignite, we are also providing transportation service. We had a separate business agreement with our client regarding lignite purchase AND transportation service. Our client pays us with a separate cheque for above mention two services. They are also maintaining two separate ledgers of the same. Our client pays us GST on lignite sales and pays GST on transportation under RCM (We had not claimed ITC on a truck, tires, etc.) So my question is whether these supplies are treated as composite supplies? Can GST officers demand GST by considering it composite supply? Further, we registered as GTA under GST, and we issue consignment notes/Bill T. Where we are consigner and our client is the consignee. Is our view is correct that we are GTA?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 January 2022 It's composite supply only. But same rate of 5% GST paid under RCM. GST official will not demand GST as 5% paid
If you treat it as composite supply, you can claim ITC on truck.

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