GTA to GTA transactions apart from giving vehicles on hire

This query is : Resolved

Mani (Querist)
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19 January 2023 GTA receiving services from another GTA apart from giving vehilcles on hire:

Project :
1.Customer will approach GTA1 to deliver some goods from one place to another
2.GTA 1 will accept the project

Service by GTA2 to GTA 1 :
3.GTA1 will approach GTA2 and will ask them to deliver goods to desired destination
4.GTA2 will rise invoice on GTA1 based on RCM and will ask GTA1 to pay GST on RCM basis
5.GTA1 will pay GST on RCM basis

Service by GTA1 to customer :
6.GTA1 will raise invoice on RCM basis on customer
7.Customer will pay GST on RCM basis

Is what GTA 1doing is correct i.e
GTA 1 is liable to pay RCM ?(or) GTA 2 to GTA 1 transaction is exempt?
if exempt please provide specific notification

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2023 GTA 2 to GTA 1 transaction is exempt.

Refer notification no.12/2017- Central Tax (Rate) dated 28.06.2017 (sr.no.22)) GST Rate is NIL for Services by way of giving on hire to a goods transport agency, a means of transportation of goods.