gst rates-gta

[Ramakrishnan Seshadri]

Dear Sir,

Could any please inform us the correct gst rate for Goods transport agency for outward supply. Whether it is 5% (CGST 2.5%+SGST 2.5%) or 12% (CGST 6% +SGST 6%)

Awaiting the reply

Thanks & Regards,

S.Ramakrishnan

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 11 of Notification No. 11/2017-Central Tax (Rate) dated 2806.2017 as amended-

Heading 9967 (Supporting services in transport)	(i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use). Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.	2.5	Provided that credit of input tax charged on goods and services used in supplying the service has not been taken. [Please refer to Explanation no. (iv)]
			or
		6	Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.

[Himansu Sekhar]

There is no difference of GST rate for inward and outward. If you have not taken the credit as mentioned by Sri Rangnathan Sir, the rate is 5%. Otherwise it is 12%.

AI Summary

GST rate for goods transport agency depends on input tax credit status; lower rate if no credit, higher otherwise. GTA services under Heading 9967 are GST-taxable; if the supplier has not taken input tax credit on inputs used to provide the service a concessional composite rate applies, whereas if input tax credit has been taken the standard higher rate applies; a GTA electing to pay the higher central tax rate must apply that rate to all its GTA supplies. A GTA is a person providing transport-related services by road who issues a consignment note.