Services of arranging trucks to goods transport agency for commission or brokerage would be classified as agent providing support services under Heading 9967 & taxable at 18%: AAR

Case Details: Authority for Advance Rulings, Andhra Pradesh Deeraj Goyal, In re - [2021] 131 taxmann.com 85 (AAR - ANDHRA PRADESH)

Judiciary and Counsel Details

• • D. Ramesh and A. Syam Sundar, Member
  • Deeraj Goyal, CA for the Applicant.

Facts of the Case

The applicant was an intermediary between truck owners and goods transport agencies and earned commission from truck owners. It filed an application for advance ruling seeking clarification whether he would be classified under transportation of goods by road or commission agents or goods transport agencies.

AAR Held

The Authority for Advance Ruling observed that applicant was engaged in the business of transportation of goods by road wherein he was acting as an intermediary between truck owners and goods transportation agencies. As per provisions of section 2(5) of the CGST Act, 2017, the applicant would fall within the ambit of ‘Agent’ under the CGST Act.

Therefore, the services provided by the applicant in relation to transportation of goods would fall under the Heading 9967 “supporting services in transport other than services of Goods Transport Agency” and liable to be taxed at 18%.