GST demand for transportation of minerals, such as coal, to mining companies has led to a number of litigations. Carriers and experts say such a mechanism is not justified, while tax officials rely on a circular issued last August.
Advertisements
The bone of contention is transportation service versus renting service. In case of transportation service, mining companies used to pay GST under reverse charge, treating the transporters as goods transport agency (GTA). However, GST officials claim that services provided by the transporters are rental of tippers/vehicles.
Read more at: business line
Share this content: