Levy of GST— In the instant case, the applicant has filed an application seeking advance ruling as to whether diesel filled free of cost by the service recipient in the engaged chartered (dedicated) vehicles, would form part of value of supply of service charged by the applicant and whether GST would be leviable on value of diesel filled free of cost by the service recipient or otherwise under GTA service.

The applicant, is a service provider engaged in transportation of goods of various companies / parties and they intend to enter into a contract with the companies/parties (service recipient) and as per terms of contracts, High Speed Diesel (fuel) filled and consumed in the engaged dedicated (chartered) vehicles used for transportation under GTA service will be under the scope of the service recipient and freight is paid by the companies / parties, excluding diesel. The applicant thus seeks advance ruling on the above said points, considering that the diesel filled and consumed by the recipient company would not be included in the amount charged by the applicant in tax invoice issued under Section 31 of CGST Act, 2017.

Subsection (4) to section 15 of the CGST Act, 2017 provides that where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed. In the instant case, as price doesn't appear to be the sole consideration for the supply in question, in as much as diesel the most important ingredient consumable required for rendering the said supply of service of transportation by the applicant GTA is being provided by the service receiver, resort has to be taken to the valuation rules as prescribed.

In this context, it is seen that Rule 27 of Central Goods and Services Tax (CGST) Rules, 2017 provides for ascertainment of value of supply of goods or services where the consideration is not wholly in money, stipulating therein that where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall,-(a) be the open market value of such supply; (b) if the open market value is not available under clause (a), be the sum total ,,of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of supply. Here in the instant case in hand, where the supply of service being rendered is transportation of goods by road by the applicant GTA, and as diesel being provided free of cost being a consideration not wholly in money, the value of such supply shall be the sum total of consideration in money and such further amount in money as is equivalent to the consideration not in money which is known at the time of supply. This also goes on to substantiate that the cost of diesel provided by service receiver is to be considered for arriving at the GST liability in such supply.

we come to the considered conclusion that in the instant transaction by the applicant diesel filled free of cost by the service recipient in the engaged chartered (dedicated) vehicles would form part of value of supply of service charged by the applicant and accordingly GST at the applicable rate would also be leviable on value inclusive of the cost of diesel filled by the service recipient, under GTA service.

Held that— Cost of diesel filled by the service recipient in the engaged chartered (dedicated) vehicles, would form part of value of instant supply of service charged by the applicant and accordingly, GST at the applicable rate would be leviable on the value inclusive of the cost of such diesel under GTA service.