GST leviable on value of free Diesel filled in vehicles by Recipient for GTA Services

Last updated: 12 November 2022

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Quick Summary

The Uttarakhand Authority for Advance Ruling (AAR) has ruled that Goods and Services Tax (GST) is applicable on the value of free diesel supplied to recipients providing Goods Transport Agency (GTA) services. This ruling means the cost of this free diesel must be added to the total value of the GTA services when calculating GST liability.

Court :
AAR, Uttarakhand

Brief :
Value of Free Diesel filled in vehicles by the Recipient must be subject to GST by adding the free value diesel in the value of the GTA service

Citation :
Ruling 10/2022-23 In Application No: 06/2022-23

The AAR, Uttarakhand in the matter ofM/s Gurjinder Singh Sandhu (Proprietor M/s New Jai Hind Transport Service) [Ruling 10/2022-23 In Application No: 06/2022-23] an application filed by, under Section 97(1) of the Central Goods and Service Tax Act, 2017 ("the CGST Act"), and the Uttarakhand Goods and Service Tax Act, 2017 ("the Uttarakhand GST Act”), passed a ruling that, the value of Free Diesel filled in vehicles by the Recipient must be subject to GST,by adding the free value diesel in the value of the Goods Transport Agency ("GTA") service.

FAQ :

Yes, the Uttarakhand AAR has ruled that GST is leviable on the value of free diesel filled in vehicles by the recipient for GTA services.

The value of the free diesel must be added to the value of the Goods Transport Agency (GTA) service provided, and GST will be levied on this combined value.

The ruling was made by the Authority for Advance Ruling (AAR), Uttarakhand.

This ruling specifically pertains to Goods Transport Agency (GTA) services.