All about Goods Transport Agency (GTA)

♦ Goods Transport Agency(GTA)

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017,GTA means (i) any person who provides service in relation to transport of goods by road and

(ii) issues consignment note, by whatever name called.

• Sec.23(1) CGST Act

(i) Any Person engaged exclusively in non-taxable supply or

(ii) Exempted supply

No Need of Registration

♦ Exempt Supply

Entry No. 18 : Transportation of Goods by Road is Exempt except in Case of GTA ( As Explained above) or Courier Services

Entry No. 21: If Transportation of Specified Goods Provided by GTA

List of Specified Goods

Relief Materials,

Single consignee value does not exceed INR 750

Single carriage value does not exceed INR 1500

Defense or military equipment,

Newspaper or magazines,

Railway equipment or materials,

Agricultural produce,

Milk, Salt and Food grains including flours, pulses and rice

Organic Manure.

Entry No. 21(a): If GTA Provide services to any Unregistered person or Unregistered CTP Except covered under RCM is Exempt from GST.

Entry No. 21(b): IF GTA Provides services to any

*A Department or Establishment of CG/SG/UT

*Local Authority

*Government Agency taking registration only for the purpose of sec 51

Exempt from GST.

Entry No. 22: Service by way of giving on hire to a GTA is also exempt from GST

• Sec.23(2) CGST Act

Any Person whose Total outward supply exclusively under RCM then no Registration Required

♦ In these 7 cases GTA is not required registration in GST. If service receiver from GTA following mention assesse and GTA is not paying Tax under Forward Charge than RCM is Applicable

(i) Any factory registered under or governed by the Factories Act, 1948 (63 of 1948)

(ii) Any society registered under the Societies Reg Act 1986 or under any other law for the time being in force in any part of India

(iii) Any co- operative society established by or under any law

(iv) Any person registered under GST

(v) Any body corporate established, by or under any law

(vi) Any partnership firm whether registered or not under any law including association of persons

(vii) Any casual taxable person

Thus, the recipient of services has to discharge GST liability

♦ Rate in tax in GST

(i) If Covered under RCM is 5% (No ITC is Allowed)

(ii) If Covered under Forward Charge 12% with ITC

♦ Liability to Pay GST is Depend upon the person who is Liable to Pay Freight

♦ Time of Supply

Earlier of Following

(i) Date of Payment or

(ii) Date following the end of 60 days from the date of Invoice