In terms of Exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (Sr. No. 21), the following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax:
“Services provided by a goods transport agency, by way of transport in a goods carriage of – (a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f ) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or manmade disasters, calamities, accidents or mishap; or
(h) defence or military equipments.
Similarly, the following services received by the GTA (Heading 9966 or 9973) is also exempt in terms of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (Sr.No.22)-
“Services by way of giving on hire –
(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods.”
Thus, if the GTA hires a means of transportation of goods, no GST is payable on such transactions.
Removal of certain exemption by way of Notification No. 04/2022- Central Tax (Rate) dated 13.7.2022. (Effective from 18.07.2022).
Notification No. 04/2022- Central Tax (Rate) dated 13.7.2022 amends service exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and removes exemption as provided against Serial No. 21, in column (3), Clauses (b) and (c) by omitting these clauses.
Now, with effect from 18.7.2022, the following exemption provided in clause (b) and (c) has been withdrawn, namely, on transportation of goods on road by a GTA where,
- the consideration charged on transportation of goods in a single carriage of GTA does not exceed Rs. 1500, and
- the consideration charged for transportation of all goods for a single consignee does not exceed Rs. 750.
#Amendment in Notification No.12/2017-Central Tax (Rate) dated 28.06.2017
1. Last amended vide Notification No. 04/2022- Central Tax (Rate) dated 13.7.2022
2. Earlier vide Notification No. 16/2021- Central Tax (Rate) dated 18.11.2021; and
3. Notification No. 07/2021 – Central Tax (Rate), dated the 30.09.2021;
4. Notification No. 05/2020 – Central Tax (Rate), dated the 16.10.2020;
5. Notification No. 04/2020 – Central Tax (Rate), dated the 30.09.2020;
6. Notification No. 28/2019 – Central Tax (Rate), dated the 31.12.2019;
7. Notification No. 21/2019 – Central Tax (Rate), dated the 30.09.2019;
8. Notification No. 13/2019 – Central Tax (Rate), dated the 31.07.2019;
9. Notification No. 04/2019 – Central Tax (Rate), dated the 29.03.2019;
10. Notification No. 28/2018 – Central Tax (Rate), dated the 31.12.2018;
11. Notification No. 23/2018 – Central Tax (Rate), dated the 20.09.2018;
12. Notification No. 14/2018 – Central Tax (Rate), dated the 26.07.2018;
13. Notification No. 02/2018 – Central Tax (Rate), dated the 25.01.2018;
14. Notification No. 47/2017 – Central Tax (Rate), dated the 14.11.2017;
15. Notification No. 32/2017 – Central Tax (Rate), dated the 13.10.2017;
16. Notification No. 30/2017 – Central Tax (Rate), dated the 29.09.2017;
17. Notification No. 25/2017 – Central Tax (Rate), dated the 21.09.2017;
18. Notification No. 21/2017 – Central Tax (Rate), dated the 22.08.2017;
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so, whatever may be the transport charge all will come under RCM. am i correct sir