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Consignment note under GST

What is a consignment note?

Consignment note has not been defined anywhere in GST law. Meaning of consignment note can be understood from Explanation to Rule 4B of Service Tax Rules, 1994.

As per said rule, a consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, a person liable for paying service tax whether consignor, consignee or the goods transport agency.

Provisions related to GTA

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June 2021, any service provider will be considered as Goods Transportation Agency (GTA) only when he engaged in the transportation of goods by road and issues consignment note.

If the consignment note is not issued by the transporter, he will not come within the ambit of the goods transport agency. Further, the services provided by individual transporters who do not issue a consignment note covered under the exemption Notification No.12/2017-Central Tax (Rate).

If a consignment note is issued, it means that the lien on the goods has been transferred to the transporter. Now the transporter is responsible for the goods till it’s safe delivery to the consignee

Sample of a consignment note

A consignment note has the following fields–

  • Name of consignor
  • Name of consignee
  • Registration number of the carriage in which the goods are transported
  • Details of the goods
  • Place of origin
  • Place of destination
  • Person liable to pay GST – consignor, consignee, or the GTA.

Consignment note

TaxGyata Team

TaxGyata Team

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