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Services provided by third party transporter to a GTA under Entry 22 (b) of Notification 12/2017 dt. 28.06.2017 is not leviable to tax

Classification of Servicethe applicant, seeking an advance ruling in respect of the following questions.

1. What will be the classification of the services (whether under service codes 996511 or 996791 or 996799 or any other) of the Applicant in case the Applicant issues the consignment note however, the actual transportation is done through the third-party transporter (who also issues the consignment note)?

2. What will he the applicable GST rate on the above services of the Applicant among the following?
12% (entry 9(iii) of the Notification 11/2017(CT) Rate dated 28 June 2017];

- 12% (entry 11(1) of the Notification 11/2017(CT) Rate (hied 28 June 20171;

- 18% (entry 11(ii) of the Notification 11/2017(CT) Rate doted 28 June 2017);

- Or any other

3. Whether the Applicant would be eligible to avail the input tax credit of the 12% GST charged by the third-party transporter?

4. Whether the transporter would be right in charging GST @12% under forward charge mechanism to Applicant in terms of Notification No 20/2017-Central Tax (Rate) dated 22 August 2017 when Applicant as the main contractor, is already charging GST@ 12% under the same Notification, which is going to remain unchanged?

5. Procedurally, is it correct to have two GTA Service Providers and two consignment notes for the same movement of goods, one issued by the Applicant as main contractor and the other by transporters sub-contractor?

Held that—
1. the services supplied by applicant would be covered under Heading 996511.

2. GST applicable in this case will be covered under Entry 9(iii) of the Notification 11/2017(CT) Rate dated 28 June 2017 subject to conditions mentioned therein i.e. a GST Rate of 5% will be applicable provided that credit sf input tax credit charged on goods and services used in supplying the services has not been taken and in the alternative a GST Rate of 12% will be applicable, provided that the applicant, goods transport agency, opting to pay central tax @6% under this entry on all the services of GTA supplied by it.

3. The third party transporter are not charging any GST in services supplied by them to applicant and hence, the applicant cannot avail input tax credit in this respect.

The question does not fall under Section 97 (a) to (g) of Section 95 of the CGST Act, 2019, and therefore this authority refrains from answering the said question no. 4 and 5.—Posco India Steel Distribution Centre Pvt. Ltd., In Re… [2020] 22 TAXLOK.COM 128 (AAR-Maharashtra)