QUESTION

If the GTA Operator(GTA-A) who is registered under GST provide the Services to another GTA Operator (GTA-B) who is not registered under GST, then
1. What is the GST Applicability on GTA-A and GTA-B ?
2. Where can Supplier (GTA-A) report the supplies in GSTR-1 and GSTR-3B ?

ANSWER

Facts of the case: GTA Operator(GTA-A) who is registered under GST provide the Services to another GTA Operator (GTA-B) who is not registered under GST, then 1. What is the GST Applicability on GTA-A and GTA-B? 2. Where can Supplier (GTA-A) report the supplies in GSTR-1 and GSTR-3B?

Law Applicable: SECTION 7 OF CGST ACT
   
(1) For the purposes of this Act, the expression 'supply' includes''

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.

Notification No. 12/2017- Central Tax (Rate)

Interpretation: As per Notification No. 12/2017- Central Tax (Rate) Services by way of giving on hire to a GTA, a means of transportation of goods is exempt.

In the instant case GTA-A has arranged supply of vehicle to GTA-B and must have received consideration in the form of rental charges or commission for that from GTA-B. Thus it will be considered as supply as per section 7 of CGST Act.

Conclusion: GTA-A will raise invoice to GTA-B. Since GTA-B is unregistered therefore GTA-A will report the supplies in GSTR-1 and GSTR-3B as B2C supplies.

Since nature of service is not mentioned in your question, please check whether exemption is applicable to you or not. (Reply dt. 10/03/2021)