Valuation of supply— In the instant case, the applicant is a Goods Transport Agency.

The question of law raised by the Applicant is whether the value of diesel, provided by the service recipient to the trucks, under the facts and circumstances of the case is required to be added to the freight charged by the Applicant for the purposes of the GST Act.

As per the submissions, the Applicant is about to enter into contract/ Agreement with service recipient for providing GTA services. As per the terms of the draft agreement, the Applicant is required to transport the goods belonging to the service recipient by deploying trucks/ trailers. 

The scope of service of the Applicant is to provide the truck/ trailer along with the driver and report at the unit of the service recipient Apart from above, the term of agreement provides that the fuel required for carrying out the transport of goods is in the scope of the service recipient and not in the scope of work of the Applicant. That fuel will be in the scope of the service recipient and the Applicant is not concerned, in any manner, with reference to the free of cost fuel.

Held that— The value of diesel filled free of cost (FOC) by the service recipient is not includable in the value of the GTA service proposed to be provided by the Applicant in the facts and circumstances of the present application subject to conditions as mentioned in draft Transport Service Agreement/ contract incorporated in the body of this decision/ruling.