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TMI BlogReverse Charge Mechanism in GST- GTA ServicesX X X X Extracts X X X X X X X X Extracts X X X X ..... with the issue and after taking into account the recommendations of the Committee, Notification Nos. 32 to 35/2004 ST all dated 03-12-2004 were issued, levying tax on Transport of Goods by Road with effect from 01-01-2005. The legal position prevailing under Service Tax is being continued under the GST regime. The services of transportation of goods by road (except 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? A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sporters who do not issue a consignment note will be covered by the entry at s.no.18 of notification no.12/2017-Central Tax (Rate), which is exempt from GST. What is a consignment note? Consignment Note is neither defined in the GST Act nor in the notification no.12/2017-Central Tax (Rate). Explanation to Rule 4B of Service Tax Rules, 1994. In terms of the said rule, consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclaration 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 31 st 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 charging Central tax at the rates as applicable to clause (b) may be issued during the period from the 18th July,202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of section 17(2) of the CGST Act, 2017 and the rules made thereunder. Summary Rate of GST Nature of charge Applicability Notification (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson; located in the taxable territory. Not applicable Revers charge applicability in case of supply of service by the goods transport agency (GTA) to in following cases [ Notification no. 13/2017- Central Tax (Rate) , the 28th Jun, 2017, as amended time to time ] Supply of services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, - (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the CGST Act, 2017 only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services. If the supplier has taken registration unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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