In re DRS Dilip Roadlines Limited (GST AAR Telangana)
The Authority for Advance Ruling, Telangana, recently issued an order under Section 98(4) of the Central Goods and Services Tax Act, 2017, and under Section 98(4) of the Telangana Goods and Services Tax Act, 2017, in response to an application filed by M/s. DRS Dilip Roadlines Limited. The application sought clarification on whether the company’s activities qualify as those of a Goods Transport Agency (GTA) under the GST framework.
M/s. DRS Dilip Roadlines Limited operates as a Goods Transport Agency, primarily engaged in the transportation of goods by road. Alongside transportation services, the company offers ancillary services such as packing, loading, unloading, and unpacking. These services are often bundled together, especially during the shifting of household goods.
The key query raised by the company pertained to the classification of its bundled services under the definition of a Goods Transport Agency as per GST regulations. To address this, the authority examined various provisions of the CGST Act and relevant notifications.
The authority highlighted the concept of composite supply, which refers to a supply consisting of two or more taxable supplies of goods or services naturally bundled and supplied together. It emphasized the criteria for identifying a composite supply and referenced legal precedents to elucidate the same.
