Gst on frieght received by gas agency from company

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This discussion clarifies the GST implications for freight charges incurred by gas agencies transporting petroleum products. While petroleum products themselves fall under VAT, the freight services provided by individual truck operators who don't issue consignment notes are generally exempt from GST under notification no. 12/2017-Central Tax (Rate). Even if the transporter is registered for GST, the service itself can remain exempt as it's not classified as a Goods Transport Agency (GTA) service, which is the taxable category.

Mukesh Khandelwal

Mukesh Khandelwal (Querist)
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29 April 2024 Dealer has one truck, which is solely used for transportation of petroleum products, under the contract of Indian oil corporation and Hindustan petroleum products.

As the petroleum products are not the part of GST, it comes under vat.

Question is whether freight charged on it also became exempt under GST

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 April 2024 Yes, it's exempt.
Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. As a corollary, the services provided by such individual transporters who do not issue a consignment note will be covered by the entry at s.no.18 of notification no.12/2017-Central Tax (Rate), which is exempt from GST.

Mukesh Khandelwal

Mukesh Khandelwal (Querist)
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30 April 2024 thanks sir, but officer said that the noticee is registred in GST, so cant avail the benefit of notification. plz guid me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 April 2024 Even if registered under GST the service is exempt service GST not applicable.
Only GTA service is taxable.
Here it's not a GTA service.

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