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Query Answer
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Hello Sir,

Passenger bus traveler does the transportation of goods.

He transports the goods of all persons includes non-passenger.

He issues consignment note for the same.

Does this service provide is considered as GTA Service?

Service receivers are mostly non registered person.

What would be the rate of GST in this case??

EXAMPLE: 

Mr. A want to transport his personal goods from Mumbai to Ahmadabad.

He contacts Neeta Travel services. He went to Neeta travel services office. 

Given goods to neeta travel services. Neeta travel services issued consignment note for his goods.

Mr. A is unregistered person.

What will be GST Scenario in this case?

Best Regards,

Dharam Shehita

Reply:

Dear Sir,

GST law define GTA in notification no. 12/2017-Central Tax (Rate) dated 28.06.2017), which states that “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;

As you have mentioned in the query that, the passenger traveling agency provides service of goods transportation by road and issues consignment note, therefore it will fall under the category of Goods transport agency.  In this case we can say that, traveling agency is providing two types of services i.e. transportation of passenger and transportation of goods. 

Further where GTA is providing services to unregistered person, no GST will be applicable (as per decision taken in 22nd GST council meeting on 06.10.2017). Whereas The following businesses (recipient of services) is required to pay GST under reverse charge:-

1.      Factory registered under the Factories Act,1948;

2.      A society registered under the Societies Registration Act, 1860 or under any other law

3.      A co-operative society established under any law;

4.      A GST registered person

5.      A body corporate established by or under any law; or

6.      A partnership firm whether registered or not (including AOP)

7.      Casual taxable person   

In conclusion, GTA service rendered to unregistered person is not liable to GST (exempt service). And where GTA service rendered to above mentioned businesses, responsibility to pay GST will be shifted to recipient of such service.
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