Question: A cement company hires a GTA (Say A) to avail transportation services. However, due to technical issues, GTA A sub contracts the same to GTA B. Now my query is, GTA A raises the bill in the name of the company and tax is paid by the company under RCM. GTA B raises the bill in the name of GTA A. Will there be any obligation on the part of GTA A since tax on such supply has already been paid by the company to the Government.
Answer: A GTA is a person who issues a consignment note. In this particular case, the determination of GTA services being provided by GTA A or GTA B shall be determined by the fact as to which GTA has issued the consignment note. In single contract of transportation two GTAs cannot exist as there will be only one consignment note for such transportation. The provision of services by a transporter shall qualify as the services of GTA if consignment note is issued by such transporter. In case party A has provided the services of GTA, then party B provided the services of GTA but transportation of goods by road other than as GTA which is exempt under notification number 12 / 2017 Alternatively it can also be said that party B has provided the vehicles for use of transportation of goods. However, in my opinion such particular view shall not be sustainable as in case of right to use without control the vehicle is put under the commands of the other person which is not the present case.
