Multiple Consignment Notes cannot be issued for a single transaction and same movement of goods – AAR Maharashtra
by Gajendra Maheshwari | Jul 16, 2020
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AAR Maharashtra*- Multiple Consignment Notes cannot be issued for a single transaction and same movement of goods
| Facts |
- Liberty Translines (‘the Applicant’) is engaged in road transportation services and registered as a Goods and Transport Agency (‘GTA’)
- POSCO ISDC Pvt. Ltd. (‘POSCO’) enters into an agreement with the client for providing transportation of goods services and issues a Consignment Note (‘CN’) to the client
- The Applicant is engaged by POSCO as sub-contractor for providing GTA services to its client based on the CN issued by POSCO
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| Issue before the Authority for Advance Ruling (‘the AAR’) |
- Whether the Applicant can issue a second CN for the same transaction, where the CN is already issued by the POSCO to the client? If yes, whether the services rendered by the Applicant be classified as a GTA service, when the service of POSCO is already classified as a GTA service?
- Whether the Applicant can charge GST @12% under Forward Charge mechanism to POSCO under the Notification No. 20/ 2017 – CT(R) dated 22.08.2017, when POSCO is already charging GST @12% under the same Notification?
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| Discussion and Findings of the AAR |
The AAR held that the Applicant cannot be treated as a GTA and therefore cannot charge GST @12% under forward charge (as a GTA) on account of the following:
- The client has given the contract for transportation of goods to POSCO, who deals with them directly, issues e-way bills along with CN and is responsible for safe delivery of goods
- The Applicant is only providing vehicles on hire to POSCO (and not GTA services)
- Details of consignor/ consignee will be shared by POSCO with the Applicant merely to enable lifting and delivery of goods
- For a single transaction and the same movement, there cannot be multiple CN and there will be one CN for movement of goods to a place, which is to be issued by POSCO
- The Applicant cannot issue a subsequent CN for the same goods and transaction where CNs are already issued by POSCO
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*Advance Ruling No. GST-ARA-39/ 2019-20/ B-24 dated 05 March 2020 (The Authority for Advance Ruling, Maharashtra) |
