One of my client is having Transportation contract for goods carriage. He is raising bills of transportation on which the recipient of service pays GST on RCM @5%. He has given sub contract to another transport contractor. Will the transport contractor who arranges transportation shall charge GST on my client ? Please mention reason in case of Yes or No.

Reply— If role of sub contractor is to just provide their vehicles to main contractor (your client) as and when called for, and your client has the transportation contract with the consignee/consignor then service provided by sub contractor will be classified as hiring of vehicles and not that of a Goods Transport Operator.

GST is not applicable on service provided by one GTA to another. Refer S.No.22 of Noti. No.12/2017-CT (Rate) Dated: 28.06.2017.

Refer advance ruling pronounced by AAR Maharashtra in matter of Liberty Translines dated 05.03.2020.