Page 151 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : POSCO INDIA STEEL DISTRIBUTION CENTRE PVT. LTD. 77
Entry 11(ii) of the Notification No. 17/2017-C.T. (Rate), dated 28 Jun., 2017 &
would be chargeable to GST at 18% wherein, the Applicant would be considered
as providing support services to its customers by way of : (a) Arranging the
truck/lorry for transportation of goods; (b) Coordinating with the logistics team
of POSCO-MAH for picking up consignment either from the port, warehouse or
from the factory location; (c) Managing the transport vendors and ensuring time-
ly delivery of the consignment; to the consignee (be it POSCO-MAH or its cus-
tomer); (d) Warehousing the goods post their import; (e) Arranging further
transportation in case of break-down of the vehicle (transshipment); (f) Assum-
ing end to end responsibility of transporting the goods to the desired location.
The relevant entry has been reproduced below for ready reference.

Sr. Chapter, section or Description of service Rate Con-
No. heading (per dition
cent)
11 Heading 9967 (Support- (ii) Supporting services in 9 -
ing services in transport) transport other than (i)
above.

2.18 In view of the above submissions, Applicant has requested that an
advance ruling be pronounced on the issue of classification of the services of the
Applicant under probable services codes of 996511/996791/996799 and applica-
ble GST rate thereon, in respect of supplies made of undertaking transport of
goods for its customers and availability of the input tax credit on the input ser-
vices of the third-party transporters who would be charging GST @ 12%.”
3. Contention - As per the jurisdictional officer
The jurisdictional office has made submissions as under :-
3.1 If applicant is not qualified as GTA or courier agency, then he can
qualify as transport operator and the exemption is available u/s. 11 of GST, 2017.
3.2 The definition of GTA is “GTA means any person who provides
service in relation to transport of goods by road and issues consignment note by
whatever name called.’ (Notification No. 11/2017-C.T. (R) Entry No. 9 explana-
tion). In this case the applicant issues consignment notes hence qualify as GTA.
3.3 As the Transport Vendor/Agency provides services by way of giv-
ing on hire to a Goods Transport Agency (GTA), i.e., in this case the applicant; a
means of transportation of goods, he is regarded as exempt within the meaning
of provisions Entry No. 22 of Notification No. 12/2017-C.T. (R), dated 28-6-2017
(Heading 9966).
3.4 The services of the second applicant is regarded under Entry No. 22
of Notification No. 12/2017-C.T. (R), dated 28-6-2017 (Heading 9966) and there-
fore will not be covered under Entry No. 11 of Notification No. 11/2017-C.T. (R),
dated 28-6-2017 (support services).
3.5 Services by way of giving on hire to a GTA, a means of transporta-
tion of goods are exempt from GST under Notification No. 12/2017-C.T. (Rate),
dated 28th June, 2017. When the tax is not payable, the question of taking any tax
credit does not arise.
3.6 When Applicant is acting as a GTA for providing services in rela-
tion to transportation of goods by road and is issuing a consignment Note, classi-
fication of services for the Transport Vendor/Agency will be SAC : 996601-
Rental services of road vehicles including buses, coaches, cars, trucks and other
GST LAW TIMES  6th August 2020  151