Advance Ruling No. UK-AAR-02/2020-21 dated  29/05/2020 passed by  GST AAR Uttarakhand on application filed by Uttarakhand Forest Development Corporation.


Applicant itself fills Form 2.1 for transportation of goods from one place to another. The said form carries details of material, vehicle no., name of driver & signature & other details. Thereafter the goods are handed over to transporter with signed Form 2.1. The transporter has liability to transport goods safely to the destination sales depot of applicant. The truck transporter after delivering the goods receives Form 3.3 from depot officer of applicant which proves that he has delivered the goods. Thereafter depot officer verifies the goods as per Form 2.1 and return the same to Logging officer who dispatched the goods to sale depots. After receiving verified Form 2.1, the Logging officer makes final payment to the transporter.


Consignment note’ has not been defined in the CGST Act or in the Notification either. In this context we take the help of Explanation to Rule 4B of Service Tax Rules, 1994 wherein the ”consignment note’ has been defined as a document provided by a goods transport agency against the receipt of goods for the transport of goods by roadways in a goods carriage.

Form 2.1 in the style of bilty which they handover to the transporters and after delivery of the goods.

Form 2.1 issued by the applicant contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, etc.

Purpose of issuing consignment note indicates that the lien on the goods has been transferred to the transporter and the transporter becomes responsible for the goods till its safe delivery to the consignee. In the present case also, by issuing Form 2.1 by the applicant, the goods are handed over to the transporter and transporter becomes responsible for the goods till its safe delivery to the destination.

Conclusions by AAR-

Form 2.1 may be treated as consignment note, thus the condition of GTA is fulfilled and thus the services procured from unregistered person for transportation of goods full under the definition of GTA and the applicant is liable to pay GST on the same under ROM

Our Comments-

1. Consignment Note to be issued by GTA and not by Other Person

Explanation under Serial No-9 to Notification No- 11/2017 dated 28.06.2017

Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

The above explanation abundantly clarifies that Liability to pay tax under Reverse Charge in respect of Transportation Services shall be subject to the satisfaction of two conditions

1. Transport Services has been rendered by Goods Transport Agency

2. Such GTA issues the consignment note

Hence the consignment note should be issued by the GTA and not any other person. However such facts has been totally ignored.

2. Difference between Goods Transport Operators and Goods Transport Agency

CBEC Flyer No- 38 dated 01.01.2018- If a consignment note is issued, it indicates that the lien on the goods has been transferred (to the transporter) and the transporter becomes responsible for the goods till its safe delivery to the consignee. It is only the services of such GTA, who assumes agency functions, that is being brought into the GST net. Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA.

In our opinion the ruling does not differentiated between the individual truck/ tempo operators with other transporters who performs agency functions

3. No Discussion on the Exemption as provided by Notification No- 12/2017

The Statute has provided specific exemption for the services by way of transportation of Goods except by Goods Transport Agency.

The services provided by such individual transporters who do not issue a consignment note will be covered by the entry at s. no. 18 of notification no. 12/2017-Central Tax (Rate), which is exempt from GST.

Sl. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition
18 Heading 9965 Services by way of transportation of goods-

(a)  by road except the services of—

(i)   a goods transportation agency;

(ii)  a courier agency;

(b)  by inland waterways.

Nil Nil

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April 2021