🚛 Can GTA service providers use both 5% and 12% GST under forward charge?
(This question is more important than you think.)
When it comes to 𝗚𝗼𝗼𝗱𝘀 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗔𝗴𝗲𝗻𝗰𝘆 (𝗚𝗧𝗔) services, GST rates and
𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗜𝗧𝗖) availability are always hot topics. 🔥
𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗱𝗶𝗹𝗲𝗺𝗺𝗮:
A GTA providing services to 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝘀𝘂𝗽𝗽𝗹𝘆𝗶𝗻𝗴 𝗲𝘅𝗲𝗺𝗽𝘁 𝗴𝗼𝗼𝗱𝘀 (like fresh fish, livestock, fruits, and vegetables) alongside 𝗼𝘁𝗵𝗲𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝘀𝘂𝗽𝗽𝗹𝘆𝗶𝗻𝗴 𝘁𝗮𝘅𝗮𝗯𝗹𝗲 𝗴𝗼𝗼𝗱𝘀 faces a tough choice:
💰𝟱% 𝗚𝗦𝗧 (𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗜𝗧𝗖) 𝘂𝗻𝗱𝗲𝗿 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗰𝗵𝗮𝗿𝗴𝗲
✅𝗥𝗲𝗱𝘂𝗰𝗲𝘀 𝗰𝗼𝘀𝘁𝘀 for customers engaged in exempt supplies, as they 𝗰𝗮𝗻’𝘁 𝗰𝗹𝗮𝗶𝗺 𝗜𝗧𝗖 (e.g., Blinkit, Licious, Country Delight).
❌ 𝗡𝗼 𝗜𝗧𝗖 means 𝗵𝗶𝗴𝗵𝗲𝗿 𝗰𝗼𝘀𝘁𝘀 for the GTA.
📉 𝟭𝟮% 𝗚𝗦𝗧 (𝘄𝗶𝘁𝗵 𝗜𝗧𝗖) 𝘂𝗻𝗱𝗲𝗿 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗰𝗵𝗮𝗿𝗴𝗲
✅ Allows the GTA and eligible customers ( if engaged in the supply of taxable supplies) to 𝗰𝗹𝗮𝗶𝗺 𝗶𝗻𝗽𝘂𝘁 𝗰𝗿𝗲𝗱𝗶𝘁—𝗿𝗲𝗱𝘂𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝘁𝗮𝘅 𝗯𝘂𝗿𝗱𝗲𝗻.
𝗖𝗮𝗻 𝗮 𝗚𝗧𝗔 𝗼𝗽𝘁 𝗳𝗼𝗿 𝗯𝗼𝘁𝗵 𝟱% 𝗮𝗻𝗱 𝟭𝟮% 𝗿𝗮𝘁𝗲𝘀 𝘂𝗻𝗱𝗲𝗿 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗰𝗵𝗮𝗿𝗴𝗲 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘆𝗲𝗮𝗿?
✅ 𝐘𝐞𝐬, 𝐭𝐡𝐞𝐲 𝐜𝐚𝐧! 🎉
While this is 𝗻𝗼𝘁 𝗲𝘅𝗽𝗹𝗶𝗰𝗶𝘁𝗹𝘆 𝗺𝗲𝗻𝘁𝗶𝗼𝗻𝗲𝗱 in 𝗖𝗚𝗦𝗧 𝗥𝗮𝘁𝗲 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝟭𝟭/𝟮𝟬𝟭𝟳, it is 𝗰𝗹𝗲𝗮𝗿𝗹𝘆 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗲𝗱 by the 𝗺𝗶𝗻𝘂𝘁𝗲𝘀 𝗼𝗳 𝘁𝗵𝗲 𝟰𝟳𝘁𝗵 𝗚𝗦𝗧 𝗖𝗼𝘂𝗻𝗰𝗶𝗹 𝗺𝗲𝗲𝘁𝗶𝗻𝗴, where the decision to allow 𝗯𝗼𝘁𝗵 𝟱% 𝗮𝗻𝗱 𝟭𝟮% 𝗚𝗦𝗧 𝗙𝗼𝗿𝘄𝗮𝗿𝗱 𝗖𝗵𝗮𝗿𝗴𝗲 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 (𝗙𝗖𝗠) was taken.
🚀 𝗜𝗳 𝗮 𝗚𝗧𝗔 𝗼𝗽𝘁𝘀 𝗳𝗼𝗿 𝗙𝗖𝗠, 𝘁𝗵𝗲𝘆 𝗰𝗮𝗻:
🔹𝗖𝗵𝗮𝗿𝗴𝗲 𝟭𝟮% (𝘄𝗶𝘁𝗵 𝗜𝗧𝗖) on some consignments.
🔹𝗖𝗵𝗮𝗿𝗴𝗲 𝟱% (𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗜𝗧𝗖) on others.
📌 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻? All services must be 𝘁𝗮𝘅𝗲𝗱 𝘂𝗻𝗱𝗲𝗿 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗰𝗵𝗮𝗿𝗴𝗲 throughout the financial year.
📊𝗪𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗱𝗼?
✅𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗶𝗻𝗽𝘂𝘁 𝗰𝗼𝘀𝘁𝘀 carefully.
✅𝗢𝗽𝘁 𝗳𝗼𝗿 𝟭𝟮% 𝗶𝗳 𝗜𝗧𝗖 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 outweigh the incremental business gained by offering 𝟱% 𝗚𝗦𝗧.
✅𝗗𝗲𝗰𝗹𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝗰𝗵𝗼𝗶𝗰𝗲 𝗮𝘁 𝘁𝗵𝗲 𝘀𝘁𝗮𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘆𝗲𝗮𝗿 𝘁𝗼 𝗲𝗻𝘀𝘂𝗿𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲.
⚡𝗙𝗶𝗻𝗮𝗹 𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀
GTA service providers now have the flexibility to 𝘀𝘄𝗶𝘁𝗰𝗵 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝟱% (𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗜𝗧𝗖) 𝗮𝗻𝗱 𝟭𝟮% (𝘄𝗶𝘁𝗵 𝗜𝗧𝗖) on different consignments—𝗼𝗳𝗳𝗲𝗿𝗶𝗻𝗴 𝘀𝗺𝗮𝗿𝘁𝗲𝗿 𝘁𝗮𝘅 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝘄𝗵𝗶𝗹𝗲 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀.
💬 𝗜𝘀 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗚𝗦𝗧 𝗿𝗮𝘁𝗲 𝗳𝗼𝗿 𝗚𝗧𝗔 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀?
Unnathi Partners
9911796707
