Case Law Details
In re Liberty Translines (GST AAR Maharashtra)
The second question raised by the applicant is whether Applicant would be right in charging GST @12% under Forward Charge mechanism to POSCO in terms of Notification No 20/2017-Central Tax (Rate) 2017 dated 22 August, 2017 when POSCO as the main contractor is already charging GST @12% under the same Notification, which is going to “remain unchanged?
Vide the second question mentioned above, the Applicant is actually asking whether they can charge GST @12% under Forward Charge mechanism as a GTA, in terms of Notification No 20/2017-Central Tax (Rate) 2017 dated 22 August, 2017. We have already held above that, in the subject case, applicant cannot issue another consignment note for the same goods and for the same transaction where consignment notes are already issued by POSCO. Hence the applicant, in respect of the subject transaction cannot be treated as a GTA and therefore cannot charge GST @12% under Forward Charge mechanism as a GTA, in terms of the said Notification No 20/2017-Central Tax (Rate) 2017 dated 22 August, 2017.
The third question raised in the subject application is whether POSCO would be eligible to claim credit of the 12% GST charged by the Applicant in its invoice under Forward charge mechanism. The proper person to raise this question would be POSCO and not the applicant. We therefore refrain from answering this particular question.
The fourth question is whether it is procedurally correct to have two GTA Service Providers and two consignment notes for the same movement of goods, one issued by the Applicant as a sub-contractor and the other by Posco JSDC Pvt. Ltd. as the main contractor.
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