Breif Issue :

Fact & Issue of the Case:

The applicant is a registered GTA, as per the N/N 12/2017 CT(Rate) dated 28.06.2017. Can applicant hire vehicles to another GTA?

1.  The applicant states that he wants to be a registered Goods Transport Agency as per N/N 12/2017 CT(Rate) dated 28.06.2017 and he wants to give vehicles on hire basis to another Goods Transport Agency.
2. As per Entry no 18 of the N/N 12/2017 CT(Rate) dated 28.06.2017 following services are exempt from GST (Other than transportation of goods by a GTA)

Services by way of transportation of goods (Heading 9965):

1. By road except the services of

1. A goods transportation agency
2. a courier agency

2. By inland waterways

3. Applicant is desirous of providing the following two services: (a) Goods transportation services as a Goods Transport Agency (b) Providing services by giving the vehicles on hire basis.
4. clause 2(ze) of N/N 12/2017 CT(Rate) dated 28.06.2017 “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;”
5. Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) is taxable as per Entry no 9 of N/N 11/2017-CT(Rate) dated 28.06.2017, further as per N/N 13/2017-CT(Rate)dated 28.06.2017 receiver of Goods Transport Agency services is required to pay tax under Reverse charge.