Page 149 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : POSCO INDIA STEEL DISTRIBUTION CENTRE PVT. LTD. 75
Code Description
Heading No. 9965 Goods Transport Services Land transport services
Group 99651 9965 11 of Goods Road transport services of Goods includ-
ing letters, parcels, live animals, household & office
furniture, containers etc. by refrigerator vehicles,
trucks, trailers, man or animal drawn vehicles or any
other vehicles.

2.10 The GST rate on various services has been prescribed under Noti-
fication No. 11/2017-C.T. (Rate), dated 28-6-2017, as amended. Entry No. 9 of the
said notification prescribes the rate for ‘Goods Transport Services’. Sub-entry (iii)
therein was substituted vide Notification No. 20/2017-C.T. (Rate), dated 22-8-
2017 with effect from 22-8-2017 and reads as under :

Sr. Chapter, Description of service Rate Condition
No. section or (per
heading cent)
9 Heading (iii) Services of 2.5 Provided that credit of
9965 (Goods Goods Transport input tax credit charged
Transport Agency (‘GTA’) in on goods and services
Services) relation to transporta- used in supplying the
tion of goods (includ- services has not been
ing used household taken [Please refer expla-
goods for personal nation no. (iv)]
use). Or
Expln. : goods 6 Provided that the goods
transport agency transport agency opting
means any person to pay Central Tax @ 6%
who provides services under this entry shall
in relation to transpor- thenceforth, be liable to
tation of goods by pay Central Tax @ 6% on
road and issues con- all the services of GTA
signment note, by supplied by it
whatever name called.

4. Explanation :
(iv) Whatever rate has been prescribed in this notification subject to the
condition that credit of input tax credit charged on goods or services used
in supplying the service has not been taken, it shall mean that :
(a) credit of input tax credit charged on goods or services used
exclusively in supplying such services has not been taken; and
(b) credit of input tax charged on goods or services used partly
for supplying such services and partly for effecting other sup-
plies eligible for input tax credits, is reversed as if supply of
such service is exempt supply & attracts provisions of sub-
section 2 of Section 17 of the CGST Act, 2017 & the rules made
thereunder.
2.11 The term ‘GTA’ has been given a meaning under explanation to
Entry No. 9(iii) of Notification No. 20/2017-C.T. (Rate). As per the explanation,
where following conditions are satisfied, the person would be qualified as a
GTA. The conditions are as follows :

GST LAW TIMES  6th August 2020  149