TaxTMI 
TaxTMI 
Reverse Charge Mechanism in GST- GTA Services
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....as the services of GTA is concerned, if the services (of Goods Transportation) are provided (by the GTA) to specified classes of persons, the tax liability falls on such recipients under the reverse charge mechanism. The following discussion will clarify the position Who is a GTA - Goods Transport Agency? * As per Notification 12/2017 dated 28.06.2017 Clause (ze) "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; * Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplier of service to be considered as a Goods Transport Agency. If such a consignment note is not issued by the transporter, the service provider will not come within the ambit of goods transport agency. * If a consignment note is issued, it indicates that the lien on the goods has been transferred (to the transporter) and the transporter becomes responsible for the goods till its safe delivery to the consignee. It is only the services of such GTA, who assumes agency functions, that is being brought into the GST net. Transportation of Goods by Road In terms of Notificatio....
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....respect of supplies on which GTA pays tax at the rate of 2.5%, GTA shall not take credit of input tax charged on goods and services used in supplying the service. [Please refer to Explanation no. (iv)] (2) The option by GTA to itself pay GST on the services supplied by it during a Financial Year shall be exercised by making a declaration in Annexure V on or after the 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year. * Form For exercising this option * Making a declaration in Annexure V before the due date mentioned below. * They can navigate Services > User Services > Opting Forward Charge Payment by GTA (Annexure V), after login, to submit their option on the portal. * Due Date for exercising option * For the Financial Year 2022-2023 shall be exercised on or before the 16th August, 2022. * For the Financial Year 2023-2024 shall be exercised on or before the 31st May, 2023. * From the Financial year 2024-25 shall be exercised on or before 1st January of the preceding Financial year but not later than 31st March of the preceding financial year. * Issue invoice * That invoice for supply of the service charg....
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....n case of supply of service by the goods transport agency (GTA) [ Notification no. 13/2017- Central Tax (Rate), the 28th Jun, 2017, as amended time to time ] Category of Supply of Services Supplier of service Recipient of Service Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to- (a) any factory registered under or governed by the Factories Act, 1948;or (b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the CGST Act or the IGST Act or the SGST Act or the UTGST Act ; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person. Goods Transport Agency (GTA) (a) Any factory registered under or governed by the Factories Act, 1948; or (b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or (c) any co-operative so....
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....goods for a single consignee does not exceed ₹ 7,500/- (Omitted vide Notification No. 04/2022 -Central Tax (Rate) dated 13-07-2022 w.e.f. 18-07-2022 ) (d) milk, salt and food grain including flour, pulses and rice; (e) organic manure; (f) newspaper or magazines registered with the Registrar of Newspapers; (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or (h) defence or military equipments. Similarly, the following services received by the GTA (Heading 9966 or 9973) is also exempt Sr.no.22, Services by way of giving on hire - (b) to a goods transport agency, a means of transportation of goods. Thus, if the GTA hires a means of transportation of goods, no GST is payable on such transactions Place of Supply of GTA services where location of GTA & recipient of GTA services is in India: Section 12(8) of IGST act prescribes place of supply of services by way of transportation of goods, including by mail or courier to,-- (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation....