The Maharashtra Authority of Advance Ruling (AAR) ruled that the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would not be classified as GTA service when the service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged.
The Applicant, M/s Liberty Translines is the owner of various goods transport vehicles, is in the business of Road Transportation, and registered as Goods Transport Agency (GTA) under GST Laws. The service rendered by the applicant is classified under SAC 996791 which is covered under reverse charge.
Applicant, at present, issues consignment notes during the execution of the service of transportation of goods and has opted for 5% GST payable by the recipient under reverse charge, as per Notification No. 11/2017-C.T. (Rate) dated 28.06.2017 as amended. Hence Applicant does not charge GST to its clients and also does not claim any input tax credit (ITC) on goods or services used in supplying the service.
The applicant sought the advance ruling on the issue whether the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would be classified as GTA service (SAC 996791) when the Service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged.
The Authority consists of members A.A. Chahure and P. Vinitha Sekhar ruled that the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would not be classified as GTA service when the service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged.
“The Applicant cannot charge GST @12% under forwarding Charge mechanism to POSCO, in terms of Notification No, 20/2017-CT. (Rate) dated 22.08.2017,” the AAR added.
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