GOODS TRANSPORT AGENCY

[MUKESH SAXENA]

A GTA is registerd under GST for forwarding charges but he does not file annx-V for choosing 5% or 12% and not charge GST on the supply of the goods because the registered receipint pay GST on freight under RCM.

Mu query is if GTA send the goods of unregistered person then who will pay GST. GTA or nobody

please clear

[KASTURI SETHI]

In this scenario consignee will pay GST.

[Ashika Agarwal]

GTA Services provided to any of the following:

- factory

- society

- person registered under GST

- Body Corporate

- Partnership Firm

- Cooperative Society

- Casual taxable person

then they are liable to pay GST irrespective of the fact whether registered or unregistered as they have to take compulsory registration for payment of tax under RCM

Other than the above i.e individual who is unregistered is recipient of this service then no GST is leviable as exempted vide entry 21A of No. No. 12/2017

It may be noted that determining factor who is Recipient of GTA Service means who engage the service of GTA.

[KASTURI SETHI]

GTA services have been carried forward into GST as it existed in Service Tax era.

The fact, 'who pays(bears) the freight will pay tax on the freight' is still relevant today.

Preference-wise status is as under :-

1.Consignor

2.Consignee

3.GTA services provider.

[Padmanathan KV]

I agree with views of Ld. Ashika Ma'am. Once the GTA does not opt for Forward charge, the GST will have to be paid on RCM by recipient. That would depend on the Status of Recipient as clearly explained by Ashika Ma'am.

AI Summary

Reverse charge on GTA services: registered recipients must pay GST while unregistered individual recipients may be exempt.
When a registered GTA does not opt to levy GST, the tax on GTA services is payable by the recipient under the reverse charge mechanism; registered recipients (factories, bodies corporate, partnership firms, cooperative societies, persons registered under GST, casual taxable persons) must pay GST, while an unregistered individual recipient may be exempt under the notification referenced. The RCM liability depends on who engages the GTA service, with practical payment priority: consignor, consignee, then GTA.