Goods and Services Tax (GST) on Goods Transport Agency (GTA) Services by Road
Who is a GTA – Goods Transport Agency?
As per Section 65B (26) of the Finance Act, 1994; ‘Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called”. Therefore, in the Service Tax regime, issuance of Consignment Note was integral and mandatory requirement before any road transporter could be brought within the ambit of GTA.
Services Not Taxable in GST
GTA services specifically exempt In terms of notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.21), provided to any person
the following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax: Services provided by a goods transport agency, by way of transport in a goods carriage of:
(a) agricultural produce;
* (b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
* (c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
(h) defence or military equipments.
* Exemption withdraw w.e.f. 18/07/2022
In terms of notification no.12/2017-Central Tax (Rate) (Updated version of the Notification No. 12/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 16 th October, 2020) (sr.no.21A),,
Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person other than the following recipients, namely: –
(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
(b) any Society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any Co-operative Society established by or under any law for the time being in force; or
(d) any body corporate established, by or under any law for the time being in force; or
(e) any partnership firm whether registered or not under any law including association of persons;
(f) any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.
In terms of notification no.12/2017-Central Tax (Rate) (Updated version of the Notification No. 12/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 16th October, 2020) (sr.no.21B),,
Services provided by a goods transport agency to carriage, to, –
(a) a Department or Establishment of the Central Government or State Government or Union territory; or
(b) local authority; or
(c) Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.
Summary
| Basis | Taxable | Non Taxable / Exemption |
| Goods / items | All Goods other then specifically exempt | • Agricultural produce;
• Milk, salt and food grain including flour, pulses and rice; • Organic manure; • Newspaper or magazines registered with the Registrar of Newspapers; • Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or • Defence or military equipments. |
| Services Provided to | All Register persons other than specifically exempt |
(I) an unregistered person, including an unregistered casual taxable person other than the following recipients, namely: – (a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or (b) any Society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any Co-operative Society established by or under any law for the time being in force; or (d) any body corporate established, by or under any law for the time being in force; or (e) any partnership firm whether registered or not under any law including association of persons; (f) any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act. (II) (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services. |
GST Rate 5% or 12% ?? Charge Forward or Reverse ??
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If GTA |
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Register Under GST |
Unregister Under GST | |
| @5% without ITC
@12% with ITC |
@5% without ITC | Only Pay Under Reverse Charge @ 5% |
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