Page 156 - GSTL_6th August 2020_Vol 39_Part 1

82 GST LAW TIMES [ Vol. 39
plicant will not be entitled for any input tax credit on services provided
by third party transporter.
Q. No. 4. Whether the transporter would be right in charging GST @ 12% un-
der forward charge mechanism to Applicant in terms of Notification No.
20/2017-Central Tax (Rate), dated 22 August, 2017 when Applicant ns the
main contractor, is already charging GST @ 12% under the same Notification,
which is going to remain unchanged?
The question raised does not pertain to supply undertaken or to be un-
dertaken by the applicant and therefore in view of the provisions of Sec-
tion 95 of the CGST Act, 2019, this authority cannot answer the question.
5. Procedurally, is it correct to have two GTA Service Providers and two con-
signment notes for the same movement of goods, one issued by the Applicant as
main contractor and the other by transporters sub-contractor?
The question raised here pertains to procedure to be followed. The ques-
tion does not fall under Section 97(a) to (g) of Section 95 of the CGST Act,
2017, and therefore this authority refrains from answering the said ques-
tion.
6. In view of the above discussions, we pass an order as follows :
ORDER
7. For reasons as discussed in the body of the order, the questions are
answered thus -
Q. No. 1 :- What will be the classification of the services (whether under ser-
vice codes 996511 or 996791 or 996799 or any other) of the Ap-
plicant in case the Applicant issues the consignment note howev-
er, the actual transportation is done through the third-party
transporter (who also issues the consignment note)?
Answer : In view of the discussions made above, the services supplied by
applicant would be covered under Heading 9965 11.
Q. 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),
dated 28 June, 2017];
- 12% [Entry 11(1) of the Notification 11/2017-C.T. (Rate),
dated 28 June, 2017];
- 18% [Entry 11(ii) of the Notification 11/2017-C.T. (Rate),
dated 28 June, 2017];
Or any other
Answer : 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
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 and in the alternative a GST Rate of 12% will be applicable,
provided that the applicant, goods transport agency, opting to pay
Central Tax @ 6% under this entry on all the services of GTA
supplied by it.
GST LAW TIMES  6th August 2020  156