The 50th GST Council Meeting, held on July 11, 2023, recommended relieving Goods Transport Agencies (GTAs) from filing yearly GST declarations under forward charge. Implementing this decision, the CBIC issued Notification No. 08/2023-Integrated Tax (Rate) on July 26, 2023. This article delves into the implications of this amendment and its application.
Analysis: Previously, GTAs were mandated to file Annexure V annually for GST payment under forward charge. However, the recent amendment grants them exemption from this requirement. GTAs opting for this mechanism in a specific financial year will be deemed to have chosen it for subsequent years, unless they choose to revert to the reverse charge mechanism (RCM).
Impact of the Recommendation & Notification: For the current financial year, GTAs under the Forward Charge Mechanism (FCM) who didn’t file the declaration will remain under FCM without any issues. To return to the RCM from the next financial year (2024-2025), GTAs must file Annexure VI between January 01, 2024, and March 31, 2024. Changes in the declaration on GTAs’ invoices must reflect the amendment as per the notification.
Conclusion: CBIC’s amendment, in accordance with the 50th GST Council Meeting’s recommendations, relieves GTAs from filing yearly GST declarations under forward charge. This measure simplifies compliance and reduces administrative burdens for GTAs. Nevertheless, GTAs must carefully weigh their GST payment options and timely file Annexure VI if they intend to revert to the reverse charge mechanism. The amendment takes effect from July 27, 2023, bringing positive changes to the GST filing process for GTAs.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 08/2023 Integrated Tax (Rate)| Dated: 26th July, 2023
G.S.R. 544(E).—In exercise of the powers conferred by sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.10/2017-Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 685(E), dated the 28th June, 2017, namely:-
In the notification, in Annexure III, for the words and figures “during the Financial Year ____ under forward charge”, the words and figures “from the Financial Year ____under forward charge and have not reverted to reverse charge mechanism ” shall be substituted.
2. This notification shall come into force with effect from the 27th July, 2023.
[F. No. –CBIC-190354/133/2023-TO(TRU-II)-CBEC]
RAJEEV RANJAN, Under Secy.
Note : The principal notification no. 10/2017 -Integrated Tax (Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 685 (E), dated the 28th June, 2017 and was last amended vide notification no. 02/2023-Integrated Tax (Rate), dated the 27th February, 2023 published in the official gazette vide number G.S.R. 144(E), dated the 28th February, 2023.
