Page 14 - Ch8_ EXEMPTION

(iv) Transportation of polyester fiber ₹ 15,000
(v) Transportation of milk products ₹ 20,000

Answer:-
(I) Exempt:- As per the exemption notification, transportation of organic manure by goods transport agency
is exempt & hence, the same is not liable to GST.
(ii) Taxable:- Service provided by GTA for Transportation of goods is taxable in full

(iii) Exempt:- Transportation of military equipments by goods transport agency is specifically exempted &
hence, the same is not liable to GST.
(iv) Taxable:- Transportation of polyester fiber is not covered under the exemption & hence, the same is liable
to GST.

(v) Taxable:- Transportation of milk by goods transport agency is specifically exempted but milk products
are taxable hence, the same is liable to GST.
Authors Note:
Transportation of goods by GTA where consideration charged for the transportation of goods on a

consignment transported in a single carriage does not exceed ₹ 1,500 & transportation of such goods for a
single consignee does not exceed ₹ 750 was exempt, but now the exemption has withdrawn

CCP 08.07.13.00
Examine whether GST is payable in the given independent cases:- [Study Mat]
(i) A State Transport Undertaking has hired motor vehicles meant to carry 8 – 10 passengers from Fast
Cab Renting, a motor vehicle renting company. Give your comments as to whether any GST is

payable in this case.
(ii) ST Ltd. has given on hire 5 trucks to Titu Transporters of Delhi (a goods transport agency) for
transporting goods in Central and West Delhi. The hiring charges for the trucks are ₹ 7,500 per
truck per day

Answer:-
(i) Legal Provision:-
Ü Services of giving on hire a motor vehicle meant to carry more than 12 passengers to a State
Transport Undertaking, is exempt from GST.
Discussion & Conclusion:-

Ü In given case, since motor vehicles given on hire by Fast Cab Renting to State Transport
Undertaking are meant to carry 8-10 passengers, it is not be eligible for exemption & thus, is
liable to GST.

(ii) Legal Provision:-
Ü Services of giving on hire a means of transportation of goods to a goods transport agency are
exempt from GST.
Discussion & Conclusion:-
Ü In the given case, hiring of trucks to Titu Transporters which is goods transport agency is covered

under the exemption irrespective of the hiring charges & thus, GST is not payable.

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