Goods Carriage Lease to GTA Is Taxable at Nil Rate: AAR

The applicant, M/s. Dharmaraju Ragul, an unregistered individual based in Namakkal, Tamil Nadu, is planning to purchase a goods carriage and give it for rent or lease to a Goods Transportation Agency (GTA). However, the applicant is confused about whether their activity of supply is taxable or not.

Question Asked by Applicant

The applicant sought an advance ruling for the following questions:

“Query-1: Whether goods carriage given on lease to Goods Transportation Agency is a taxable supply?

Query-2: If the above mentioned supply is an exempted/nil rated supply, are there any conditions to be satisfied to avail that exemption?

Query-3: Whether the service provider has to be goods transportation agency to avail the above mentioned exemption or it can be any other person?”

Advance Ruling

As per the Authority for Advance Ruling, Tamil Nadu:

• The supply of goods carriage on rent or lease to GTA qualifies as a taxable supply and is charged at a nil rate of GST.
• Column 5 of the Table in the Notification mentions any conditions that must be fulfilled to claim the exemption for each entry. However, for Serial No. 22, no such conditions are mentioned for claiming the facility provided under the notification.
• The applicant does not need to be a GTA themselves to avail of the exemption from the notification.