Page 153 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : POSCO INDIA STEEL DISTRIBUTION CENTRE PVT. LTD. 79
(a) between Customs Port and the place of business of POSCO group
companies for import/export consignments; and
(b) From POSCO group companies to their customer in India.
5.3 It has been submitted that Applicant, either provides transportation
services on its own account, or engages a third-party transporter. In the former
case, applicant engages its own fleet of vehicles and in the latter situation, the
Applicant enters into a back-to-back arrangement for transportation of goods
with Transport Vendors/Transport Agencies (third party). In both the situations,
it is the applicant who are issuing the Consignment Notes, which are stamped by
the receiver of the transported goods. The applicant has also submitted that the
third party transporters also issue Consignment Notes which are filed in their
respective offices and which are not stamped by the Consignee of the said goods.
It has also been submitted that the Applicant has been acting as a Goods
Transport Agency (GTA) issuing valid consignment notes in respect of the goods
transported and delivered and charging GST @ 12% on such transportation un-
der forward charge mechanism.
5.4 In view of the above said facts we shall take up the questions raised
by the applicant vide their submissions dated 14-11-2019 as under :-
Q. No. 1 :- What will be the classification of the services (whether under service
codes 996511 or 996791 or 996799 or any other) of the Applicant in case the
Applicant issues the consignment note however, the actual transportation is
done through the third-party transporter (who also issues the consignment
note)?
In terms of Sr. No. 18 of Notification No. 12/2017-Central Tax (Rate),
dated 28-6-2017 as amended, the following services are exempt from
GST.
Services by way of transportation of goods (Heading 9965)
(a) by road except the services of :
(i) a goods transportation agency;
(ii) ………………;
(b) ……………
Thus, it is seen from the above notification that, mere transportation of
goods by road is exempt from GST unless it is a service rendered by a
GTA. Even though ‘GTA’ is not defined under the GST Act, mention of
GTA is made in Notification No. 12/2017. As per 2(ze) of the said Notifi-
cation, “Goods transport agency” means any person who provides service in re-
lation to transport of goods by road and issues consignment note, by whatever
named called”.
In the subject case, since the applicant is providing, to POSCO group of
companies, services in relation to transport of goods by road, and are al-
so issuing consignment notes for such transactions, thus, in our opinion
applicant can be considered as Goods Transport Agency (GTA).
Service Code 9965 pertains to ‘Goods Transport Service’. Service Code
99651 pertains to ‘Land transport services of Goods’. Service Code Heading
9965 11 pertains to “Road transport services of Goods including letters, par-
cels, live animals, household & office furniture, containers etc. by refrigerator
vehicles, trucks, trailers, man or animal drawn vehicles or any other vehicles’.

GST LAW TIMES  6th August 2020  153