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Exemption to GTA Services

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

03 May 2020

XYZ (Goods Transport Agency) is registered with GST and is providing GTA services to PQR (Goods Transport Agency) who is not registered with GST. Is XYZ required to charge GST to PQR or it is exempted since PQR is un-registered?

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38 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

It's exempted. GST not applicable / chargeable.

* GTA to GTA service is Exempted.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 03 May 2020

GTA Services is under RCM only when it's supplied to Receptient as prescribed in Notification 13/2017 CT (R) .
So GTA to GTA is Exempted

1 Like

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 May 2020

If the unregistered GTA is a partnership firm or company then taxable. If not then exempted

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

Yes.... I agreed to Mr Pankaj Rawat Ji reply...

GTA to GTA services is exempted under GST.

1 Like

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 May 2020

GTA to GTA service of nature of transportation is not exempt in all cases. Hiring service to a GTA whether by GTA or other person is exempt in all cases.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

GTA to GTA service is Exempted in all cases...

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 May 2020

@ RAJA P M

Kindly provide the provision or entry in notification. If there is no such provision or entry then it is not exempt

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

Better to You will give as same

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

@ Mr CA Altamush Zafar., Where is noted GTA to GTA is taxable in GST...? Can You give Notifications and Rules and Law and act in GST...? And one more think before write any naming word just put Mr or Mrs or Ms in before the name. It's better to understand Yours/Ours respect...

1 Like

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 May 2020

@ RAJA P M

Services of Transportation by GTA is a taxable service. The rates are specified in Notification 11/2017 CTR as 5% with RCM and 12% under Forward Charge.

Notification 12/2017 CTR deals with exemptions. Entry 21, 21A & 21B exempts transportation services by GTA

Entry 22 of the same notification exempts services received by GTA of hire. Non of the entries specify exemption on services by GTA to GTA.

Kindly tell the provision where you found such exemption

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2020

Originally posted by : Kaustubh Ram Karandikar
	XYZ (Goods Transport Agency) is registered with GST and is providing GTA services to PQR (Goods Transport Agency) who is not registered with GST. Is XYZ required to charge GST to PQR or it is exempted since PQR is un-registered?

Please refer notification no 12/2017 CT(R) & 13/2017 CT(R)

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 03 May 2020

Dear Altamush

As per Notification 12/2017 CT , under s.no. 22.
Services by way of giving on hire –
to GTA (means transportation of Goods) is Exempted.

So in Context to above , if One GTA is Providing Services (hiring of transport) to Another GTA is Exempted.

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 May 2020

Dear Pankaj

That is the point...the query was a GTA is providing GTA service. Now GTA is no service but the query was regarding transportation service and not hiring service. If it is hiring service then it is exempt and that is what I said earlier.

But a service provided by GTA to a GTA is no blanket exemption and not for transportation at any rate.

Regards

@ RAJA P M

I have referred the notifications quite minutely and I would suggest you do the same and also refer to my earlier answers in this query about the unregistered GTA being Company or Partnership and applicability of GST on it