Background of GTA Service :
The levy of Service Tax on Road Transportation Service has always remained a subject matter of uncertainty. Initially, Finance Act 1997 proposed to tax the services of road transportation which was subsequently withdrawn after nation-wide strike. Thereafter in the Budget 2004, it was proposed to levy service tax on services provided by a goods transport agency in relation to transport of goods by road vide Finance Act, 2004 with effect from 10-9- 2004. However, the levy was deferred till further notice again in view of protest by transporters. The Government thereafter constituted a committee to study the matter. Taking into account the recommendations of the Committee, Notification Nos. 32 to 35/2004 – ST all dated 3-12- 2004 were issued, so as to effectively impose tax on the service of transport of goods by road with effect from 1-1-2005 under reverse charge.
As we are aware that Goods and Service Tax Law implemented on 01st July 2017. the services which provided under existing law same also applicable in the GST with new rates and some relaxation.
Goods and Transport service divided in 2 Parts .
- Transportation of Goods
- Transportation of Passengers
1. TRANSPORTATION OF GOODS
a) By Rail and Vessels
| By Rail
(5 % With ITC) |
By Vessels
(5% With ITC) |
By Rail Container
( 12% With ITC )) |
Exemptions
(By Rail and By Vessels) |
| Goods Sent by Railway | Goods Sent Through Vessels Within India
And India to Out Side India |
Any Transport of goods in Containers by rail by any person other than Indian Railway | a) Medical Relief – Material and Equipments b) Agricultural produce c) News Papers d) Milk , Salt , Foods Grains e) Defence Equipments f) Military Equipments g) Organic manuals For Vessels : Goods through in inland waterways |
b) By Air
| By Air
GST 18 % ( With ITC) |
Exemptions |
| a) Sent within India
b) Goods sent India to other Countries ( Means Outside India) |
a) Service by way of transportation of goods by an Air craft from a place outside India to India |
c) By Goods Transport Agency ( GTA)
| GST 5% ( NO ITC) | Exemptions |
| a) Services of Goods by Goods transport agency in relation to transportation of goods (including used house hold goods for personal use ) Explanation : “Goods transport agency” means any person who provides services in relation to transport of goods by road or issue consignment note by whatever name called. |
a) Agricultural Produce
b) Food grains , Salt , Milk including flour pluses and rice c) Gross amount charged for goods in a Single Carriage not exceeding Rs. 1500 /- d) Gross amount charged for goods in single consignee does not exceeding Rs. 750/- e) Organic Manure f) Defence or Military equipments g) News papers or magazine h) defence or military equipments i) relief material meant for victim of natural or man- made disaster, calamities, accidents or mishap |
d) General Exemptions ( Other Than GTA and Courier Agency )
Transportation of goods or any services given by the Government exempt up to Rs. 5000/-
e) by way of giving on hire :
If a vehicle is given to Goods Transportation agency ( GTA) for using transport of goods agency and then freight received is exempt under GST
Any Other Cases other than Above then GST @ 18 % With ITC
*** REVERSE CHARGE ***
Reverse Charge Mechanism Apply on GTA Services in cases of following recipient of Services in GST 100 % RCM Apply ( Notification 13/2017 Dated 28.06.2017 )
| a | Factory Registered under Factory Act 1948 |
| b | Any Society registered under society Act |
| c | Co- Operative Societies |
| d | Partnership firm , BOI , AOP |
| e | Body Corporate ( Company) |
| f | Registered person under GST |
| g | Any Causal taxable person |
2. TRANSPORTATION OF PASSENGERS
a) By Rail
| By Rail
GST 5 % ( With ITC) |
Exemptions |
| a) Transportation of Passenger
1st Class Passenger and A/c Passenger Cover here |
1. General exemption given to railway for passenger OTHER THEN
a) 1st Class Passenger b) A/C Passenger 2. Metro , Tramway , Monorail |
b) By Air
| By Air
GST 5 % (With ITC) |
By Air
GST 12 % (With ITC) |
By Air
GST 18 % (With ITC) |
Exemptions |
| a) If any transportation of passenger under regional connectivity scheme Airport by Ministry of Civil Aviation.
b) Transport of passengers with or without accompanied belonging by Air Economy Class |
a) Transport of passengers with or without accompanied belonging by Air other than Economy Class i. e First Class and Business Class cover under here
|
Any Other Cases | There is exemption given to following cities where departure or landing in airport a) Arunachal Pradesh b) Meghalaya c) Mizoram d) Manipur e) Tripura f) Sikkim g) Nagaland h) bagodara ( West Bengal) i) Assam` |
c) By Renting Motor Cab
| By Motor Cab
GST 5 % ( No ITC ) |
By Motor Cab
GST 18 % ( With ITC ) |
Exemptions |
| Transport of services by motor cab where the cost of fuel is included in the consideration charge from service recipient. | Any other cases | a) Metered Cab b) Auto Rickshaw c) E- Rickshaw |
d) Other Services
| AC Contract Carriage
AC Stage Carriage GST 5 % (No ITC) |
Radio Taxi
(GPS Connectivity) GST 5 % (No ITC) |
Any Other Cases
GST 18 % (With ITC) |
Exemptions |
| Any Vehicle taken on Contract or rent transportation passenger with AC and With 7 Passenger capacity | Any radio tax have GPS connectivity and taken on rent by any person for transportation.
“Radio taxi” Means a taxi including a radio cub , by whatever name called which is two way communication with central control office. |
Any Other Cases | a) Non AC Contact Carriage
b) Non AC Stage Carriage c) Public Transportation Services ( Other than Tourist ) d) if any car or vehicle given on rent to state transport agency with 12 passenger capacity are also exempt |
*** Reverse Charge on Passenger – Through E Commerce Operator ***
Any Service Provided by the E – Commerce operator to passenger for transportation from one place to another place. Here Driver of Taxi Providing services to passenger for transportation.
In this Case E Commerce operator is Responsible for Reverse charge amount.
Disclaimer: The Content of this documents are solely for informational purpose and hope it will clears most of doubts related to the GTA Services. The author is practicing CA and reached at dhavaldoshi1988@gmail.com , Cell No. +91 94282 28267
Author Bio
If AOP having GST number provide services of hiring buses for Election duty to Deputy Commissioner, then what is the implication of GST?
Please Reply.
If a person having contract with Rail for Transportation of goods other then provided in Exemption list provided in the GTA
then Registered Person has to paid tax to railway @ 5 % GST and take ITC
my mail id is dhavaldoshi1988@gmail,com
Sir if a person is having contract with railways and railways is charging Fess including GST 5% for the containers allowed to be used by that person for transporting goods by rail .In that case what will be the treatment of that GST charged by railways and what will be the liability for transporter.
Plz let me know your mail id so that i can discuss my queries with you