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||
|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-
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