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Service of leasing transport vehicle is classifiable under SAC 997311.

Classification of Service — The Applicant intends to lease trucks or tankers without operator to goods transport agencies (hereinafter called “GTA”) or any other persons. The Applicant seeks a ruling whether supply of services by way of leasing of goods transport vehicles without operators to GTA would be exempt under serial no. 22 (b) of Notification no 12/2017 CT(Rate) dated 28/06/2017 (corresponding State Notification No. 1136 - FT dated 28/06/2017), as amended from time to time (hereinafter collectively called ‘Exemption Notification’). It also wants to know, if not exempted what will be the appropriate classification and rate of tax in GST Act, 2017. Further, the applicant seeks clarification on whether the credit of input tax paid on purchasing of motor vehicles is admissible or not.

The Applicant’s service of leasing goods transport vehicles is classifiable under SAC 997311 and taxable under SI No. 17(iii) of Notification no 12/2017 CT(Rate) dated 28/06/2017 (corresponding State No. 1135-FT dated 28/06/2017), as amended.

The Applicant can claim input tax credit in accordance with law on the goods transport vehicles so leased out. — Ishan Resins & Paints Limited, In Re… [2020] 20 TAXLOK.COM 037 (AAR-WB)