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CA Intermediate · Taxation · Exemptions from GST

Ravi Rural Transport of Jaipur provides the following in a month: transportation of passengers by a stage carriage Rs 2,00,000, transport of goods by road by a goods transport agency (GTA) of agricultural produce Rs 1,20,000, and transport of goods by road by a GTA of branded furniture Rs 3,00,000 (consignment of each goods carriage over Rs 1,500 and each consignee). Which services are exempt?

Stage carriage passenger transport and GTA transport of agricultural produce are exempt. GTA transport of branded furniture is not in the exempt goods list and remains taxable, so the second option is correct.

  1. AOnly passenger transport by stage carriage
  2. BStage carriage passenger transport and GTA transport of agricultural produceCorrect
  3. CGTA transport of agricultural produce and furniture
  4. DNone of them

Explanation

Transport of passengers by stage carriage is exempt. GTA services for transporting agricultural produce are exempt. Transport of branded furniture by GTA is not covered by the list of exempt goods, so it is taxable. The first option wrongly ignores the agricultural produce exemption.

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