Introduction: This article discusses in detail about GTA not covered under reverse charge under GST regime.
Query: In case of GTA, there is reverse charge under GST but some transporter are giving invoice with charging GST on invoice itself what to do in such cases?
Whether can transporter also charge GST @12%?
Ans. Vide notification no. 22/2017–Central Tax (Rate) dated 22-08-2017, the definition of GTA has been amended.
Now the revised definition of GTA is “ Supply of services by a goods transport agency ( GTA) who has not paid central tax at the rate of 6%”.
Meaning thereby, the GTA services from a GTA who has paid opted for payment of GST @ 12% on forward charge basis shall be liable for payment of GST under reverse charge basis by the recipient of such services as required by section u/s 9(3) of CGST Act, 2017.
The Input Tax credit of the taxes as charged by such GTA can be claimed by the recipient of such services.
Revised Position in respect of taxability of, Input tax credit of GST for GTA services is as below:
| GTA services | Tax Rate | GST Paid by | Whether RCM applies? | Whether ITC available to the person paying GST? |
| Unregistered GTA | 5% | Registered Service Receiver | Yes | Yes |
| Registered GTA not paying GST @ 12% | 5% | Registered Service Receiver | Yes | Yes |
| Registered GTA paying GST @ 12% | 12% | GTA | No |
Yes
|
| Registered GTA to Unregistered receiver | 12% | GTA | No | Yes |
| Registered GTA to Unregistered receiver | 5% | GTA | No | No |
| *GTA service for below 8 Points by GTA are exempt | *Exempt | |||
| Services by other than GTA | Services of Goods transportation by road are exempted (other than GTA and courier services) | |||
*GST will not apply on transport of following goods by a goods transport agency-
- 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
- defence or military equipment
- goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500
- goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.
The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at [email protected] , Mob. +91 9953587496.
Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.
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Dear Sir,
Can this option choose by transporter anytime ? means if a registered transporter providing service and most of the parties are paying taxes on RCM basis, now if that transporter wants to chose @ 12% forward tax option, can he do the same?
Dear Vinod Sir,
goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage is less than Rs. 1,500
goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.
Is this condition changed to Rs.500/- only under GST ?
Sir, in last two cases where services by Registered GTA to Unregistered person. – @12% or 5% – no use to unregistered person. So, unregistered person should select GTA who charges @ 5%. Am I Right?
RCM of 5% paid by Registered service receiver is not eligible for ITC.Is there notification inthis regard.
Regards,
Bala