In re EFC Logistics India Pvt. Ltd. (GST AAR Odisha)
In the case of “In re EFC Logistics India Pvt. Ltd. (GST AAR Odisha),” M/S EFC Logistics India Pvt Ltd (hereinafter referred to as the ‘Applicant’), filed an application for an advance ruling under Section 97 of the CGST Act, 2017, and the corresponding section of the OGST Act. The Applicant is a Goods Transport Agency (GTA) registered under the GST provisions, providing transport services to M/s Rungta Mines Ltd., and paying GST at a rate of 12% under the Forward Charge Mechanism with input tax credit (ITC).
Questions for Advance Ruling
The Applicant sought clarification on two main points:
- Whether the supplier, being the owner of the vehicle itself, can charge GST on rental/hiring services under the Forward Charge Mechanism, even though his service is exempted.
- If the answer to the first question is “yes,” whether the Applicant, being a GTA, can claim ITC on the basis of the supplier’s invoices under Section 16 of the CGST Act, 2017.
Background
The Applicant intends to enter into an agreement with M/S Govinda Transport Private Limited, the vehicle owner, to rent vehicles. The rental agreement includes fuel, tolls, driver’s salary, repairs, and other maintenance costs. The Applicant referenced Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, specifically Entry No. 22(b), which exempts services by way of giving on hire to a GTA, a means of transportation of goods, implying that the supplier (Govinda Transport) is not entitled to charge GST.
