GST: CBEC clarifies Issues on Transport & Logistics [Read FAQs]

In a set of Frequently Asked Questions (FAQs), the Central Board of Excise and Customs (CBEC) has clarified certain issues on applicability of the new Goods and Services Tax (GST) law on the Transport and Logistic sector.

The Board said that a single truck owner-operator plying mostly between States is not liable to take GST registration for carrying the goods booked for the truck by an agent, even if his turnover exceeds the threshold limit of Rs. Twenty lakhs.

However, a truck supplier/broker is liable to obtain registration under GST for the brokerage paid by the truck owners, when such brokerage exceeds Rs. 20 lakhs.

For a question, “Is the electronic ticket receipt acceptable as a tax invoice for the purpose of GST? Is there any requirement for the Airlines to issue a proper tax invoice?”, the Board answered that “Yes, the electronic ticket in the global standard format (and without further modifications) is acceptable as a tax compliant invoice for GST purposes, regardless of the value of the transaction. Rule 54 (4) of the CGST Rules, 2017 refers. However, for B2B supplies, a tax invoice may be provided to enable the registered business customer to claim input tax credits.”

It further said that a transporter is required to maintain any records of my services of transportation in terms of section 35(2) of the CGST Act, 2017. Further, in terms of rule 56 of the CGST Rules, 2017, a transporter is required to maintain records of goods transported, delivered and goods stored in transit by him along with the GSTIN of the registered consigner and consignee for each of your branches.

It also said that there shall be no GST on such tickets even though the travel date is on or after 1^st July 2017 since service tax has already been collected and discharged by the Airlines on tickets issued prior to 1st July, 2017.

For a question regarding requirement for electronic ticket receipts issued to be signed or digitally signed for GST purposes, the Board answered in negative. “In terms of Rule 54 (4) of the CGST Rules, 2017 in the case of passenger transportation service, a tax invoice shall include ticket in any form, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under Rule 46 of the Rules ibid. As the electronic tickets issued by the Airlines are in the global standard format, such electronic ticket receipts are not required to be signed or digitally signed,” it said.