Transportation services provided by one GTA to another GTA.

CASE STUDY


Mr. A has a registered Transporter under GST who does billing in Reverse Charges Mechanism. He hires some vehicles from outside which are registered supplier in GST. when the supplier (outsiders) files his GSTR -1, the liability of RCM automatic Shown in GSTR 3B on recipient portal. In this case the online GSTR 3B portal not allowed to file the return without payment of RCM.
Will there be any liability to deposit the RCM on the hire charges if not, so please what is the process to file the GSTR 3B?

FACTS OF THE CASE:

Applicability of RCM on transportation services provided by one GTA to another GTA.

LAW APPLICABLE:

Serial number 22 of Notification No. 12/2017 exempts the following services;

Sl.No.	Chapter, Section, Heading, Group or Service Code (Tariff)	Description of Services	Rate (per cent.)	Condition
22	Heading 9966 or Heading 9973	Services by way of giving on hire (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically operated vehicle meant to carry more than twelve passengers; or (b) to a goods transport agency, a means of transportation of goods. (c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an Educational Institution providing services by way of pre-school education and education upto higher secondary school or equivalent.	Nil	Nil

NTERPRETATION:

The services provided by way of giving on hire to a goods transport agency, a means of transportation of goods would be exempt from GST as per serial number 22 of Notification No. 12/2017 CTR.

Since these services are specifically mentioned in the exemption notification, hence GST would not be applicable on these services. Accordingly, the question of RCM would not arise in this case.

The supplier should record these services under exempt supply while filing GST Returns, then it would not be reflected under RCM liabilty of the recipient.

CONCLUSION:

RCM would not be applicable as such services are exempt from GST as per serial no. 22 of Notification No. 12/2017- Central Tax (Rate)

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