The applicant Sri Saravana who was desirous to register his GTA. Apart from rendering the transport services the applicant also wanted to give the vehicles on the hiring basis to another Goods Transport Agency. Now the issue raised in the application was whether the applicant can give the transport vehicle to the other GTA was justified?
Further, the applicant contended that the Goods Transport Agency means any agency which facilitates the transportation service and the consignment note was the prerequisite for the supplier of service.
After due observation and hearing of the contention of the applicant, the Karnataka AAR comprising of two members Harish Dharnia and Dr. Ravi Prasad observed that both the Central Goods and Service Tax Act (CGST) and Karnataka Goods and service Tax Act (KGST) mostly consists of the same provisions and in case the provisions differ than that provisions are specifically mentioned. The AAR held that the person can be GTA for rendering transport services and at the same time give the vehicle on hire basis to another GTA.