In re Giri Transport Company (Prop. Sh. Sunil Giri) (GST AAAR Rajasthan)
The Rajasthan Appellate Authority for Advance Rulings (AAAR) has issued a significant order in the case of Giri Transport Company (Prop. Sh. Sunil Giri). The AAAR reviewed and ruled on preliminary objections raised by the respondent, Giri Transport Company, against the department’s appeals challenging an Advance Ruling from June 2022. The case addresses complex issues around the inclusion of the value of diesel provided free of cost (FOC) in calculating Goods Transport Agency (GTA) services under the Goods and Services Tax (GST) framework.
Background of the Case
The case dates back to June 16, 2022, when the Rajasthan Authority of Advance Ruling (AAR) decided that diesel supplied by service recipients at no charge should not be included in the valuation of GTA services offered by Giri Transport Company. This ruling supported the respondent’s stance that such diesel did not constitute taxable supply in determining service value. Following this ruling, the department, represented by the Principal Commissioner of CGST, Jodhpur, and the Deputy Commissioner of State Tax, Suratgarh, appealed the decision, asserting that the AAR’s interpretation might not fully align with GST regulations.
In response, Giri Transport Company submitted preliminary objections, challenging the appeals’ admissibility. The AAAR subsequently called for a hearing, where both parties provided extensive arguments on the objections and merit considerations of the appeal.
