Goods transport agency: Goods transport agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. A consignment note is an essential condition to be considered as a GTA.

Consignment note: A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage.

Registration requirements: IF Transports,

a) Exclusively goods on which RCM applicable (even turnover more than Rs. 20/10 Lacs limit) – NO REGISTRATION

b) Turnover less than Rs. 20/10 Lacs Limit (including RCM based and service to unregistered) – NO REGISTRATION

c) All other cases – REGISTER

Rate of Tax: Options available to GTA – 12% with ITC or 5% without ITC AND 5% with ITC by Consignor/consignee at RCM Basis.

Exemptions:

The following services provided by GTA by way of transport in a goods carriage are exempt from payment of tax:

(a) Agricultural produce.

(b) Goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1,500/-.

(c) Goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750/-.

(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 mishaps.

(h) Defense or military equipment etc.

Reverse Charge Mechanism:

A person paying to GTA will pay GST under RCM. (Consignor / Consignee)

The categories on which RCM applicable, include:

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

(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.

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

(d) Any person registered under the CGST Act, the Integrated GST (IGST) Act, the State GST (SGST) Act, or the Union Territory GST (UTGST) Act.

(e) Anybody corporate established, by or under any law.

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

(g) Any casual taxable person.

Input Tax Credit:

– A person (consignor/consignee) paying GST under RCM will pay GST at the rate of 5% and will take ITC on the same.

– A GTA paying GST at the rate of 5%. No one will get the ITC. OR A GTA paying GST at the rate of 12%, GTA will get the ITC. (Option to opt in beginning of the Financial Year)

CGST/SGST/IGST Applicability:

The place of supply of services by way of transportation of goods, including by mail or courier to:

(a) A registered person, shall be the location of such person.

(b) A person other than a registered person, shall be the location at which such goods are handed over for their transportation.

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23 Comments

  1. RAVI GOEL says:

    Sir
    if GTA give B2B supply ( Tax Paid under RCM by Recipient)
    is it mandatory to file GSTR 1 for GTA ?
    if yes then how will GTA show it under GSTR 1 ?

  2. N SAI KISHORE says:

    Sir
    I am of the opinion that there is no legal basis to state that GTA has to opt for 12% forward charge in the beginning of FY

  3. Ashok Mittal says:

    A registered transporter
    1. charging gst @12% from some clients/service receiver. 2. no gst charged from some clients/service receiver because service receiver are paying gst under rcm. 3. leasing their truck to another transporter and charging no gst due to exemption.
    In this case, transporter is providing taxable services, services covered under rcm and exempted services. pl clarify, can he avail full ITC on their capital goods like purchase of trucks/tempo etc.

  4. Ram says:

    Sir if I am having one truck & I used that truck for transporting fly ash from power plant to Cement factory & I do this transaction with the help of other transporter, Means my truck was running under ABC transport agency & I get all money received from ABC transport & my receipt was more then 20 Lacs should I am liable to take registration under Gst, if yes than what will be the rate of Gst which I charged

  5. GULAB ROHIT says:

    If Registered Transporter issues Bills without charged any GST to Registered person then what to do? NIL GST RETURN IS APPLICABLE FOR FILLING. ?

  6. rm says:

    when rcm is abolished from oct17 under gst, all transporters need to raise gst bill by taking gst registration, other wise there is no liability on the receiver of gta services for transport. rcm cannot be made applicable under law for certain categories of goods/services. either all should be registered or no rcm by receiver of service. also for all public utility works like roads, canals, dams etc the earlier service tax was exempt. the same rationale of law be applicable even under gst.

  7. RAGI ROHATGI says:

    I am registered with GST as GTA. what is the tax liability on receipts on which RCM not charged? Do I have to deposit the GST on that amount.

  8. Hitesh Desai says:

    if you are receiver of service (consignor also included) of transporter you can take ITC but you have to add transport amount to your invoice and charge GST on all value.

  9. HASMUKH PATEL says:

    As per article and previous cenvat credit rule we can take ITC on GTA services-RCM. But see dedession of the Supreme Court has rejected – 2018-TIOL-163-SC-CX the review petition filed against its decision, reported as CCE Vs Ultratech Cement Ltd – 2018-TIOL-42-SC-CX, holding that cenvat credit of Service Tax paid on Goods Transport Agency services, for transporting the goods upto customers’ premises is not entitled for cenvat credit, sending shockwaves throughout the country.
    Now in this case we can claim ITC on GTA -RCM bases under GST rule ?

    1. SATISH CHOUDHARY says:

      whether to pay CGST, SGST OR IGST is totally depend on POS, if your transporter is exist in your state, then you have to considered it as intra state transaction and need to pay CGST and SGST, and if your transporter is belong to other state then you have to consider it inter state transaction and need to pay as IGST…

  10. Sankara Narayanan.H. says:

    The article is good and covers the subject. But I request you to kindly clarify on the subject, where the transporter is registered as a not registered vendor and whether is it require to obtain consignment note, even though the GST is discharged under RCM basis.

  11. priya kadam says:

    Dear Sir,

    Thanks for sharing this important article.
    we r the consignor, if we pay RCM on transportation chr @5%, so can we take ITC

    1. Hitesh Desai says:

      if you are receiver of service (consignor also included) of transporter you can take ITC but you have to add transport amount to your invoice and charge GST on all value.

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