GTA ser tax and Manpower supply ser tax under GST

[venkat eswaran]

Dear All,

We are service receiver of Transport of goods by road (GTA) and Manpower supply service and paying ser tax on behalf of provider.

Now in GST how we can pay this? Is separate challan is available since we mfg industry paying GST also.

What is rate of tax for GTA and Manpower supply service?

We used to avail 70% rebate on bill value for GTA whether this will continue and we have to pay full GST?

Kindly share your views on this

Thanks in advance

Venkat

[KASTURI SETHI]

GTA 5% No credit. Manpower 18% with full ITC.

[Rajagopalan Ranganathan]

Sir,

GST on GTA is payable under reverse charge mechanism at the rate if 5% with out ITC. No abatement is provided for GTA service. Man power supply service is chargeable with GST at the rate of 18% but no reverse charge mechanism. GST is payable by the provider of the service.

[Ganeshan Kalyani]

GTA- Goods Transport Agency is under reverse charge mechanism where the person other than the person providing the service shall pay tax. Under service tax provision it was payable @15% on 30% of freight amount i.e. 4.5% of total freight amount. Now, under GST 5% tax is payable which is more by 0.5%. Secondly , the credit was available under cenvat credit rule. Now under GST input tax credit is not allowed. This seems unfair.

[venkat eswaran]

Dear all,

Thanks for your valuable inputs. We are manufacturer and till date we taking GTA ser tax credit adjust it against Excise payable . So this is not possible in GST is it? Even if GTA paid by transporter itself [ service provider] we cannot take credit?

So under GST Manpower supply ser tax we need not to pay as a service receiver?

Actually one of our labour contractor not registered in ser tax so far since he is not going to pay ser tax. So In GST he has register compulsorily is it?

What will happen in receive Service or Matl from the unregistered dealer? Anything problem for us?

kindly share your views

Thanks in advance

Venkat

[rajanish vikas]

if supply of taxable goods/ Services by a unregistered person , then recipient of service (who is having GSTIN) is liable to pay tax at specified rate under reverse charge basis and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

AI Summary

Reverse charge mechanism: GTA taxable with no input tax credit, while manpower supply is taxable and provider-liable.
Reverse charge applies to Goods Transport Agency services, making the recipient liable to pay GST on GTA and, as advised, no input tax credit is available for such GTA supplies; manpower supply services are taxable with the supplier liable to pay GST and recipients may claim input tax credit when tax is paid by the provider. If a supplier is unregistered, the registered recipient must pay tax under reverse charge and comply with the Act's obligations as the person liable to pay tax.