Hiring vehicles GTA

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This discussion clarifies the GST implications for hiring vehicles versus using Goods Transport Agency (GTA) services. While GTA services are generally subject to GST under Reverse Charge Mechanism (RCM), GST is not directly applicable to the simple provision of vehicles. The key distinction lies in the contractual agreement: 'hire' involves a transfer of control, whereas GTA services establish a bailor-bailee relationship for transporting goods. GST is applicable to both, with potential exemptions.

Deepak

Deepak (Querist)

28 March 2022 Want to know whether GST is applicable on providing hiring of vehicles or GTA.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 March 2022 GTA GST payable under RCM.
GST not applicable on providing vehicles.

CA Altamush Zafar

CA Altamush Zafar (Expert)

29 March 2022 To see whether it hire or GTA it is evident from the arrangement or contractual agreement. In hire the control of the vehicle is transferred and in GTA goods are given to transporter and the relation is that of bailor and bailee. In both hire and GTA GST is applicable subject to certain exemptions.

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