GST Council, in its 22nd Meeting on 06/10/2017 has noted that Goods Transport Agencies (GTAs) are not willing to provide services to unregistered persons due to GST Implications. Therefore, it has been decided and recommended by the GST Council, to remove the hardship being faced by small unregistered businesses on this account. The services provided by a GTA to an unregistered person shall be exempted from GST.
It may be noted that as per existing provisions under GST laws, the GTA Services provided to a registered person are taxable in the hands of such registered taxpayer, however where such services are provided to a person who is not registered under GST (unregistered person), the GTA has to make the tax payment.