AAR Clarifies GST Rate and ITC Eligibility for GTA

The present application has been filed by Amitkumar Maheshbhai Gulwani (Trade name: M/s Godavari Logistics) (Applicant) before the Gujarat Authority for Advance Ruling Goods and Services Tax, D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad.

The Gujarat Authority for Advance Ruling Goods and Services Tax, D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad (AAR) issued Advance Ruling No. GUJ/GAAR/R/2025/55 concerning whether the company can pay GST at 12% under forward charge on GTA services under Notification No. 11/2017.

The M/s Godavari Logistics is undertaking the activity of transportation of goods by road as a Goods Transport Agency (GTA), issuing LRs for transport purposes. The company is already discharging GST at 12% under the forward charge mechanism in respect of GTA services and accordingly avails input tax credit (ITC) on eligible input services.

Question asked by the applicant

Following are the questions asked by the applicant, seeking the Gujarat Authority for Advance Ruling:

Question 1: “Whether the applicant can pay GST at 12% under forward charge on GTA services under Notification No. 11/2017-Central Tax (R) dated 22/06/2017, as amended by Notification No. 13/2017-Central tax (R) dated 28/06/2017 and claim full ITC including on biodiesel fuel.”

AAR’s Decision on the Classifications

The Gujarat Authority For Advance Ruling on Goods and Services Tax gave the following answers to the questions asked by the applicant:

Answer: The Gujarat Authority ruled that M/s Godavari Logistics, a valid Goods Transport Agency, can continue paying GST under forward charge at 12% (18% from September 22, 2025). Since they are paying GST under forward charge, they are also allowed to claim full Input Tax Credit (ITC), including ITC on biodiesel used as fuel in their trucks, subject to fulfilling certain ITC conditions under Section 16 & Section 17 of the CGST Act, 2017 and compliance with Notification 11/2017-CT(R) dated August 22, 2017.