Appellate AAR Maharashtra upheld the decision of AAR Maharashtra. AAR had held as follows-
Only the contractor/person who enters into an agreement for transportation with the consignee/consignor will qualify as GTA (issuance of a Consignment Note is necessary qualification for GTA);
Services provided by sub-contractor to main contractor will not qualify as GTA service, as the sub-contractor is only transporter and providing services as the truck owner. Thus, both sub-contractor and main contractor of goods transport service cannot issue Consignment Note as there is a difference between a person who owns truck i.e. transporter, and a transport agent i.e. GTA;
The services of the sub-contractor will qualify as renting of vehicle to contractor. Accordingly, sub-contractor cannot charge GST at the rate of 12% under Forward Charge Mechanism.
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