RENTING OF VEHICLES FROM ONE GTA TO ANOTHER GTA

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This query is : Resolved

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This discussion clarifies that renting vehicles from one Goods Transport Agency (GTA) to another on a monthly basis is considered an exempt supply under GST. While not taxable, it must still be reported as an exempt supply using SAC code 996712. Additionally, Tax Deducted at Source (TDS) is applicable under section 194C of the Income Tax Act.

Shalini RN

Shalini RN (Querist)

16 December 2022 Can a GTA provide the transportation vehicle to another GTA on monthly rent basis. Is it taxable under GST? If not do we have to bill the rent invoice and show it in exempted supplies? What is the SAC for the same? Whether TDS would be as per 94C or 94I ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 December 2022 Yes, it's not taxable under GST.
Yes, it's exempt supply.
194c TDS applicable.

Shalini RN

Shalini RN (Querist)

20 December 2022 THANK YOU SIR,
WHAT ABOUT SAC CODE SIR?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

21 July 2025 SAC Code for Renting of Vehicles
The SAC (Services Accounting Code) applicable for renting of motor vehicles (excluding vehicles meant for transport of goods or passengers) is:

996712 – Renting of motor vehicles

Since the renting is exempt, it should still be reported under this SAC code but as exempt supply.

Shalini RN

Shalini RN (Querist)

22 July 2025 Thank you very much sir

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