Reverse Charge Mechanism in GST- GTA Services

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....ept services of  GTA) continue to be exempt even under the GST regime. In so far 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 th....

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....sonal use) supplied by a GTA where,-     (a) GTA does not exercise the option to itself pay GST on the services supplied by it; 2.5 The credit of input tax charged on goods and services used in supplying the service has not been taken. [Please refer to Explanation no. (iv)] (b) GTA exercises the option to itself pay GST on services supplied by it. 2.5 (1) In 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....

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....(as amended time to time) Under Reverse Charge @ 5% For services to Specified category of person 11/2017 -Central Tax (Rate) Under Forward Charge @ 5% For Service to other than specified category of person & GTA don't wish to avail ITC 11/2017 -Central Tax (Rate) Under Forward Charge @ 12% For Service to other than specified category of person & GTA don't wish to avail ITC 11/2017 -Central Tax (Rate)  Revers charge applicability in 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 th....

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.... (Rate) dated 28.06.2017 ] In terms of the following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax: Sr.no.21, Services provided by a goods transport agency, by way of transport in a goods carriage of - (a) agricultural produce;  (b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1500/-; (Omitted vide Notification No. 04/2022 -Central Tax (Rate) dated 13-07-2022 w.e.f. 18-07-2022 ) (c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 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 g....