Goods Transport Agent providing services to Rajasthan State Food And Civil Supplies Corporation Ltd. ( A Public Ltd. Co. and State Govt. Co. registered under GST as regular tax payer type ) ( in short RSFCSCL ). The service is transportation of sugar ( not an agricultural produce ) from godowns of RSFCSCL to fair price shops in different cities. This GTA service is taxable or exempt ? If exempt then under which Sr.no. of exemption notification No. 12/2017-CT (R ) ? Can we claim exemption under sr.no. 3 or 12 ?

Reply—GST is not applicable on services provided by a goods transport agency, by way of transport of goods in a goods carriage, to a Department or Establishment of the Central Government or State Government or Union territory or local authority or Governmental agencies which has taken registration under GST only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services. (As per Sr. no. 21B of Notification no. 12/2017 (central tax rate) dated 28.06.2017).

In the above case, RSFCSCL is registered as regular dealer in GST, exemption will not available.