M/s Liberty Translines - AAR Maharashtra

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.