Top 19 Frequent Questions and answers on Transport and logistics services in GST

Top 19 Frequent Questions and answers on Transport pic

Here are the most Top 19 Frequent Questions and answers on Transport services asked by the taxpayers.

Question No. 1) I am a truck owner-operator and I am likely to carry the goods in my truck booked by the agent; The service I have provided has exceeded Rs 20 lakh during the previous year. Do I have to register?

Answer 1: You are not liable for registration because the services provided by way of transportation of goods by road are exempt. Refer Notification No. 12/2017-Central Tax (Rate), dated June 28, 2017

Question No. 2) I have a single truck and I rent it a major agents, who provides a GTA service; Do I need to take GST Registration?

Answer 2: Registration is not require when the services are provided to the GTA.  This has been exempt-ed from the tax on the means of transportation of goods by road vide Notification Number 12/2017 (Rate) dated June 28, 2017.

Question No. 3) In my truck, I only take fruits and vegetables, whose transport service is in connection with GST are exempt, Shall i register under GST ?

Answer 3: Apart from the GTA or courier agency, the services provided by way of transportation of goods by road are exempt.  This has reference to Entry no.18 against Notification no. 12/2017-Central Tax (Rate) dated June 28, 2017 and thus you are not liable for registration.

Question no. 4) I am a truck supplier / broker. My job is to get orders for truck owners. I quoted rates for transporting GTA from truck owners and I get a small amount of commission. This is paid by brokerage truck owners. Since the services provided by the road are free from tax, am I responsible for registration?

Answer 4: If you get the amount of commission you received in the financial year If you are more than, you are responsible for registration. 20 lakhs (excluding Jammu and Kashmir, 10 lakhs in special category states)

Question No. 5) As a transporter, do I need any of my services for transportation?

Answer 5: Yes, in the case of Section 35 (2) of the CGST Act, 2017, you are required to maintain records of the consignor, consignee and other relevant details of the goods. In addition, in terms of Rule 56 of the CGST rules, 2017 you and the Registered Consignor and the custodians of each of your branches, along with the GSTIN required to maintain the records of the goods you distribute, stored in transit Are there.

Question No. 6) There are intermediaries and supportive services, such as loading / unloading, packing / unpacking, transit and temporary storage, which are provided in relation Road supplies can be treated as part of the GTA service, being an aggregate supply, or these services should be considered as separate supplies.

Answer 6: GTA provides service to a person in relation to transportation of goods from the road in a car, which is an overall service. The overall service can include various intermediaries and supportive services such as loading / unloading, packing / shell, transshipment and temporary storage, which are provided during the transport of goods by road. These services are not provided as independent services but supplementary to the main service, i.e., transport of goods by road. Invoice issued by GTA to provide the value of the intermediary and support services.
In view of this, any intermediary and assistant service is provided in connection with the transportation of freight and duty through road, if any, are included in the challan issued by GTA for such services, Such services will be part of the GTA service and will not be considered as a separate supply. In fact, any services provided with the GTA service will be part of the overall service of the GTA with the GTA service, and not as a separate supply.
However, if such casual services are provided different services and are charged separately, whether they are considered as separate supplies or different invoices.

Question No. 7) According to Notification Number 05/2017-Middle Tax Dated 19th June, 2017, the people who are engaged in supplying only taxable goods or services or both, the total tax on which the basis of the reverse charge Payment is given under sub-section (3) of Section 9 of the CGST Act, 2017, exempted from obtaining registration under the act obtained by the recipient of such goods or services. Please clarify that the benefit of this exemption can be availed by providing a GTA service in relation to the transportation of goods by road under the reverse charge mechanism (RCM).

Answer 7: Yes, under RCM, one can avail of this discount by providing a GTA service in relation to the goods from the road.

Question No. 8) Can a GTA obtain registration for one vertical (Rail, Cargo, Renting, Warehousing etc.) for which tax needs to be paid while not obtaining registration for another vertical (GTA under RCM) on which there is no tax liability.

Answer 8: No, because the business entity is not engaged exclusively in the supply of services liable to tax under reverse charge mechanism.

Question No. 9) In transport industry, old vehicles, old tyres, scrap material etc, on which no input tax credit (ITC) has been taken, are disposed of after completion of their useful life. As a truck owner disposing of these goods, am I required to pay GST considering that no ITC has been taken at the time of their initial purchases? Would levy of tax in such cases not amount to double taxation, as tax has already been paid at the time of initial purchases?

Answer 9: Under section 7 of the CGST Act, 2017 supply includes all forms of supply of goods such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Sale or disposal of old vehicles, old tyres and scrap material for a consideration would therefore attract GST regardless of whether ITC has been availed or not.

Question No. 10) Please clarify whether input tax credit is available to the recipient of service, when the GST paid by him is at a concessional rate of 5% under RCM.

Answer 10: Yes, input tax credit is available in such cases.

Question No. 11) When a GTA hires a truck (with driver) from another GST registered entity for the purpose of providing goods transport service to a registered recipient, whether tax credit is available to the GTA on the GST paid by him to the owner of the truck registered under GST.

Answer 11: Services by way of giving on hire to a GTA, a means of transportation of goods are exempt from GST under Notification number 12/2017-Central Tax (Rate) dated 28th June 2017. When the tax is not payable, the question of taking any tax credit does not arise.

Question No. 12) In terms of section 12(9) of the IGST Act, 2017 the place of supply of passenger transportation service to a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey.
In section 2 (3) of the IGST Act, 2017, the term “continuous journey” has been defined to mean a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued.
Do all stopovers cause a break in continuous journey? Does the definition of “continuous journey” include instances whereby the stopover is for any period of time?

Answer 12: The term “stopover” has been explained in section 2(3) of the IGST Act, 2017 to mean a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time. However, all stopovers do not cause a break in continuous journey. Thus a travel on Delhi-London-New York on a single ticket with a halt at London will be covered by the definition of continuous journey. However, the return journey of New York-London-Delhi will be treated as a separate journey and will be outside the scope of a continuous journey.

Question No. 13: How GST is to be charged on a multi-leg international journey, say Delhi- Dubai-Boston-Dubai-Delhi? Is GST chargeable for the entire journey and discharged at Delhi, or the GST is to be charged for Delhi-Dubai sector alone and discharged at Delhi, or GST is to be charged up to the farthest point of return, i.e. Delhi-Dubai-Boston at Delhi?

Answer 13: In this case if a single ticket or invoice has been issued for the Delhi-Dubai-Boston then it is a continuous journey even if there is a stopover at Dubai and the tax (CGST + SGST) would be charged at Delhi. The return journey of Boston-Dubai-Delhi would not be a continuous journey. The return journey not being a continuous journey and its place of supply being outside India, the said journey, would be liable to tax if the location of the supplier is in India.

Question No. 14) Is Electronic Ticket Receipt Acceptable as Tax Invoice for the purpose of GST? Is there a need for a proper tax invoice issue?

Answer 14: Yes, despite the value of the electronic ticket (and without modification) transactions in the global standard format, tax compliance invoices are acceptable as per GST objectives. Regarding the rules of CGT rules 54 (4), 2017. However, for a B2B supply, a tax invoice can be used to claim the input tax credited to a registered invoice customer.

Question No. 15) Is there any requirement for issuing electronic ticket receipt or digitally signed for GST purposes?

Answer 15: In the context of no rule 54 (4) CGST rules, in the case of passenger transport service, 2017, a tax invoice ticket will be include-d in any form or not, in the order given in sequence, and whether or not the address of the recipient of the service Rule ibid contains other information as outlined in Rule 46. Since electronic tickets issued by airlines are in the global standard format, there is no need to sign or digitally sign such electronic ticket receipts.

Question No. 16) Do airlines need to issue invoices to carry out transactions, (i.e. in terms of airwaves, tickets in terms of ticket) or any consolidated invoice, all for a particular unit Can capture the details of the invoice, on a monthly or fortnight basis?

Answer 16: Details of supply of all for a particular unit can be issued on the same invoice on the basis of the provisions of section 31 of the CGST Act, 2017. In such a case, the ticket is not the challan issued by the airlines. Will take it.

Question No. 17) Whether the GST will be applied on 1 July 2017 on or after the tickets issued on July 1, 2017, on which the service tax was collected and disbursed.

Answer 17: As service tax has already been collected and discharged by the airlines on tickets issued before July 1, 2017, on such ticket, no GST may be on the date of travel or after July 2017. Will be done.

Question No. 18) Does GST treatments follow the underlying air transport service for the fee for support services in relation to air transport?

Answer 18: Yes, the support services are part of the service to transport the passenger from the air and do not make a separate supply of service. In this regard, the subsidiary services are included

Services that are accidental for passengers by air transport (for example, extra luggage fees, date change fees, non-short-term fees, preferred seat fees, cancellation fees etc.).
As a result, the support services will be treated within the same category of service
“Transport of air by passengers” and passengers will attract the same rate of GST as per air transport.

Question no. 19) Airlines GST will be entitled to input tax credit under transitional rules, liability for payment of service tax arise, after the GST being implemented due to litigation or dispute resolution?

Answer 19: Yes, Section 142 6 (a) of the CGST Act, 2017 regarding a claim for the Cenvat credit, every proceeding of appeal, review or references, whether the first was introduce-d, on or after the due date, under the existing law Provide-d that the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of Central Excise T, 1, 9, 44 of the 11 B (2).

Question no. 20) Whether the services of elephant or camel ride, rickshaw ride and boat ride are taxable?

Answer 20: Elephant, camel joy rides cannot be classified as transportation services. These services will attract GST @ 18% with threshold exemption being available to small service providers. [Sl. No 34(iii) of notification No. 11/2017-CT(Rate) dated 28.06.2017 as amended by notification No. 1/2018-CT(Rate) dated 25.01.2018 refers].