Page 155 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : POSCO INDIA STEEL DISTRIBUTION CENTRE PVT. LTD. 81
regasification of natural gas for transportation; radio navigational aid lo-
cating services, such as GPS (global positioning system) provision.
From the submissions made by the applicant we find that applicant is a
‘GTA’ providing ‘Goods Transport Agency Services’ and the services
provided by them are transport of goods by road. In the subject case,
they have a contract/agreement with POSCO group companies to pro-
vide transportation services wherein they undertake dispatch of con-
signments by road for POSCO group companies. We find that they are
rendering Goods Transport Services to POSCO group of companies di-
rectly.
In view of the discussions made above, in our opinion the services sup-
plied by them would be covered under Heading 9965 which covers
‘Goods Transport Services’, sub-heading 99651 which covers ‘Land
Transport services of Goods’ and further under SAC 996511.
Question No. 2. What will be the applicable GST rate on the above services of
the Applicant among the following?
- 12% [Entry 9(iii) of the Notification 11/2017-C.T. (Rate), dat-
ed 28 June, 2017];
- 12% [Entry 11(1) of the Notification 11/2017-C.T. (Rate), dat-
ed 28 June, 2017];
- 18% (Entry 11(ii) of the Notification 11/2017-C.T. (Rate), dat-
ed 28 June, 2017);
Or any other
Having held that the services supplied by the applicant to PCSCO group
of companies are covered under Heading 9965 11, we have no hesitation
in holding that GST applicable in this case will be covered under Entry
9(iii) of the Notification No. 11/2017-C.T. (Rate), dated 28 June, 2017 sub-
ject to conditions mentioned therein i.e. a GST Rate of 5% will be appli-
cable provided that credit of input tax credit charged on goods and ser-
vices used in supplying the services has not been taken and a GST Rate
of 12% will be applicable provided that the goods transport agency opt-
ing to pay Central Tax @ 6% under this entry on all the services of GTA
supplied by it.
Q. No. 3. Whether the Applicant would be eligible to avail the input tax credit of
the 12% GST charged by the third-party transporters?
We have already held that GST applicable in this case will be covered
under Entry 9(iii) of the Notification 11/2017-C.T. (Rate), dated 28 June,
2017 subject to conditions mentioned therein i.e. a GST Rate of 5% will be
applicable provided that credit of input tax credit charged on goods and
services used in supplying the services has not been taken. However, if
applicant opt to pay GST at the rate of 12%, in such a case, they can avail
ITC subject to satisfying the provisions of Chapter V of the CGST Act,
2017. As far as the services provided by third party transporter to appli-
cant are concerned, prima facie it appears that the third party transporters
are classifying their services under Entry 22(b) of Notification 12/2017,
dated 28-6-2017 and are not levying any tax on the services supplied by
them to applicant. As no GST is paid by third party transporter, the ap-

GST LAW TIMES  6th August 2020  155