Case Details: Dharmaraju Ragul, In Re (2025) 31 Centax 310 (A.A.R.-GST-T.N.)
Judiciary and Counsel Details
- S/Shri Balakrishna S. & B. Suseel Kumar, Member
Facts of the Case
The applicant, an unregistered individual, intended to purchase a goods carriage (reefer vehicle) and lease it to a company, registered as Goods Transport Agency (GTA). He sought clarification on whether leasing such a vehicle to a GTA constitutes a taxable supply, whether the supply would be exempt or nil-rated, and whether he himself must be a GTA to claim exemption under Notification No. 12/2017-CT(Rate). The agreement was for a five-year lease without an operator, and the GTA provided consignment notes as proof of its operations.
AAR Held
The Authority for Advance Ruling held that supplying a goods carriage on hire or lease to a GTA constitutes a taxable supply. However, as per Sl. No. 22 of Notification No. 12/2017-CT (Rate) dated 28-06-2017, such activity is chargeable at a nil rate of GST. The notification covers rental or leasing services under heading 9973, and no condition mandates that the service provider must be a GTA. Thus, even non-GTA persons can claim this exemption, provided the vehicle is hired to a GTA for transportation of goods.
List of Circulars and Notifications Cited
- Notification No. 12/2017-CT (Rate) dated dated 28-06-2017
- Circular No. 164/20/2021-GST (CBIC-190354/207/2021-TU(TRU-II)-CBEC) dated 6th October, 2021,
