{"id":4611,"date":"2025-06-30T17:26:52","date_gmt":"2025-06-30T11:56:52","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4611"},"modified":"2025-06-30T17:26:52","modified_gmt":"2025-06-30T11:56:52","slug":"leasing-goods-carriage-to-gta-attracts-nil-gst-rate-aar","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/leasing-goods-carriage-to-gta-attracts-nil-gst-rate-aar","title":{"rendered":"Leasing Goods Carriage to GTA Attracts Nil GST Rate | AAR"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000400089\/activity-of-supplying-goods-carriage-on-hire-or-lease-to-gta-is-chargeable-to-nil-rate-of-tax-aar\">Dharmaraju Ragul, In Re (2025) 31 Centax 310 (A.A.R.-GST-T.N.)<\/a> <\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri Balakrishna S.<\/strong> &amp; <strong>B. Suseel Kumar<\/strong>, Member<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>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 <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-CT(Rate)&amp;itemType=AP\">Notification No. 12\/2017-CT(Rate)<\/a>. The agreement was for a five-year lease without an operator, and the GTA provided consignment notes as proof of its operations.<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p>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 <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-CT%20(Rate)&amp;itemType=AP\">Notification No. 12\/2017-CT (Rate)<\/a> 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.<\/p>\n<h2><em>List of Circulars and Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2017-CT(Rate)&amp;itemType=AP\">Notification No. 12\/2017-CT (Rate)<\/a> dated dated 28-06-2017<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Circular%20No.%20164%2F20%2F2021-GST&amp;itemType=AP\">Circular No. 164\/20\/2021-GST<\/a> (CBIC-190354\/207\/2021-TU(TRU-II)-CBEC) dated 6th October, 2021,<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Dharmaraju Ragul, In Re (2025) 31 Centax 310 (A.A.R.-GST-T.N.) Judiciary&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-4611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Leasing Goods Carriage to GTA Attracts Nil GST Rate | AAR<\/title>\n<meta name=\"description\" content=\"AAR rules leasing goods carriage to GTA is a taxable supply but attracts nil GST under Notification 12\/2017; the exemption not limited to GTA service providers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/leasing-goods-carriage-to-gta-attracts-nil-gst-rate-aar\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Leasing Goods Carriage to GTA Attracts Nil GST Rate | AAR\" \/>\n<meta property=\"og:description\" content=\"AAR rules leasing goods carriage to GTA is a taxable supply but attracts nil GST under Notification 12\/2017; 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