Passenger bus traveler does the
transportation of goods.
He transports the goods of all
persons includes non-passenger.
He issues consignment note for the
Does this service provide is
considered as GTA Service?
Service receivers are mostly non
What would be the rate of GST in
Mr. A want
to transport his personal goods from Mumbai to Ahmadabad.
contacts Neeta Travel services. He went to Neeta travel services office.
goods to neeta travel services. Neeta travel services issued consignment note
for his goods.
Mr. A is
be GST Scenario in this case?
GST law define GTA
in notification no. 12/2017-Central Tax (Rate) dated 28.06.2017), which states
that “goods transport agency” means any person who provides service in relation
to transport of goods by road and issues consignment note, by whatever name
have mentioned in the query that, the passenger traveling agency provides
service of goods transportation by road and issues consignment
note, therefore it will fall under the category of Goods transport
agency. In this case we can say that, traveling agency is providing two
types of services i.e. transportation of passenger and transportation of
where GTA is providing services to unregistered person, no GST will be
applicable (as per decision taken in 22nd GST council meeting on
06.10.2017). Whereas The following businesses (recipient of services) is
required to pay GST under reverse charge:-
1. Factory registered under the
2. A society registered under the
Societies Registration Act, 1860 or under any other law
3. A co-operative society established
under any law;
4. A GST registered person
5. A body corporate established by or
under any law; or
6. A partnership firm whether
registered or not (including AOP)
7. Casual taxable person
In conclusion, GTA service rendered to
unregistered person is not liable to GST (exempt service). And where GTA
service rendered to above mentioned businesses, responsibility to pay GST
will be shifted to recipient of such service.