Case Law Details
Shree Jeet Transport Vs Union of India (Chhattisgarh High Court)
Chhattisgarh High Court held that diesel even though being provided free of cost by the service recipient to GTA service provider has to be added to the value for the purpose of GST.
Facts- This instant petition is filed to challenge the order passed by the Appellate Authority for Advance Ruling, Chhattisgarh as no decision was rendered in terms of Section 101(3) of the Central Goods and Service Tax Act, 2017 and the Chhattisgarh Goods and Service Tax Act, 2017 and the order dated 4-1-2021 passed by the Authority for Advance Ruling, Chhattisgarh to be illegal wherein it was held that Goods and Service Tax would be leviable on the value of diesel provided by the service recipient Free of Cost.
Conclusion-
Since the transportation inter-alia is an interdependent on supply of fuel, it would be a crucial component to run the business of GTA. If such integral part of survival of reins are held by service recipient, in such a case, it would be actually doing the substance addition of GTA survival. Therefore, the Circular dated 8th June 2018 on which the petitioner tried to rely upon would not be of any help especially considering the nature of business and the provisions of Section 7(1)(a) and 15(2)(b) of CGST Act.
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