Hiring of goods transportation vehicle by GTA is exempted from GST

Last updated: 04 January 2023
Quick Summary
The Chhattisgarh Authority for Advance Ruling (AAR) has ruled that hiring a goods transportation vehicle by a Goods Transportation Agency (GTA) is exempt from Goods and Services Tax (GST). This means no GST is chargeable on such services, and there is no liability under the Reverse Charge Mechanism (RCM). The ruling clarifies that services provided by vehicle owners to a GTA, where the GTA issues consignment notes, fall under an exemption notification.

Court :
AAR, Chhattisgarh

Brief :
The AAR, Chhattisgarh in the matter of M/s Prahallad Ray Rekhraj Agarwal [AdvanceRulingNo. STC/AAR/04/2020/39 dated October 8, 2020] has ruled that no Goods and Services Tax ("GST") will be chargeable on the hiring of a transportation vehicle by a Goods Transportation Agency ("GTA") and also has no liability under Reverse Charge Mechanism ("RCM").

Citation :
Advance Ruling No. STC/AAR/04/2020/39 dated October 8, 2020

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Bimal Jain
Published in GST
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