A LTD has GST registration in many states. It’s one branch on Delhi takes order from customer to transport goods from Delhi to Maharashtra.
A Ltd of Delhi takes goods and transport them to its Maharashtra office, then A ltd of Maharashtra transports goods to customers desired location.
Tax invoice for this GTA service raised by A Ltd of Delhi to customers.
Whether road transportation service by A Ltd of Maharashtra to A Ltd of Delhi is GTA service or not.
Whether it is taxable.
If taxable whether under forward charge or outward charges.
Nice question.. From the facts, the invoice for GTA services is issued by A Ltd, Delhi to customer in Maharashtra. Considering GTA is registered , it appears that it would be charging 12% IGST with benefit of ITC. Further the consignment note as well as invoice will have name and address of customer in Maharashtra.
The transportation to Maharashtra branch and then it to deliver it to customers location is a internal arrangement. But primary issue here is the e way bill, in case vehicle is changed appropriate change need to be made in e way bill.
Now coming to the services provided by Maharashtra branch to Delhi branch, the same should very well be taxable even if it is without consideration as per Schedule I of the CGST Act. Now whether it would be GTA service or not?.This shall hinge upon whether Maharashtra branch issues consignment note or not for this transaction. If it issues it will be GTA Service , else would be regarded as support service (although it can be argued that its is exempt and transportation of goods apart from GTA / courier are exempt). It will be under forward charge and ITC can be availed by Delhi branch, in case it is paying GST @ 12%.
Team Clearmytax.in
What if A Ltd prefer to follow 5% under RCM without ITC and for inter unit deemed supply it does not issue consignment note.
Can we treat it as supply of transportation via road other than by GTA and courier agencies.
On that basis can we claim exemption?