Happy to share the first update on GST on Goods Transport Agency. This impacts all of us since the tax under GTA is payable by us on the reverse charge basis.
Please note this is not a very detailed writeup covering every aspect of the law. This is for basic general reading and presents a broad outline. If you have any specific query then please feel free to reach out to us for a solution.
S&A Knowledge Series - GST on goods transport agency
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GST on Goods Transport
S&A Knowledge Series
Prepaired by Anjali Roy
Article Assistant at Seth & Associates,
www.sethspro.com firstname.lastname@example.org New Delhi | Lucknow | Coimbatore
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WHO IS A GTA
As per Section 65B (26) of the Finance Act, 1994; “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”. Therefore, in the Service Tax regime,
issuance of Consignment Note (C/N) was integral and mandatory requirement before any
road transporter could be brought within the ambit of GTA.
RATE OF TAX
To be levied at 12% in case the GTA avails Input Tax credit while suppling the service else
to be levied at 5%
PERSON LIABLE TO PAY
In case the tax is to be paid at 5% then the person who is the recipient of the supply is
supposed to discharge the liability and not the supplier (reverse charge). Following the
recepients upon which the duty has been casted.
a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
b) any society registered under the Societies Registration Act, 1860 (21 of 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 Central Goods and Services Tax Act or the Integrated
Goods and Services Tax Act or
e) the State Goods and Services Tax Act or theUnion Territory
f) any body corporate established, by or under any law; or
g) any partnership firm whether registered or not under any law including association
of persons; or
h) any casual taxable person.
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Services provided by a GTA, 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
c) does not exceed one thousand five hundred rupees;
d) goods, where consideration charged for transportation of all such goods for a single
consignee does not exceed
e) rupees seven hundred and fifty;
f) milk, salt and food grain including flour, pulses and rice;
g) organic manure;
h) newspaper or magazines registered with the Registrar of Newspapers;
i) relief materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap; or
j) defence or military equipments.
Similarly, the following services received by the GTA (Heading 9966 or 9973) is also
exempt in terms of notification no.12/2017- Central Tax (Rate) dated 28.06.2017
(sr.no.22) Services by way of giving on hire :
(b) to a goods transport agency, a means of transportation of goods
To qualify as services of GTA, the GTA should be necessarilyissuing a consignment note.
Only services provided by a GTA are taxable under GST. Services of transportation of
goods by a person other than GTA are exempt. Moreover, in cases where the service of
GTA is availed by the specified categories of persons in the taxable territory, the
recipients who avail such services are the ones liable to pay GST and not the supplier of
services unless the GTA opts for collecting and paying taxes @ 12% (6% CGST + 6%
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The information herein contained is of a general nature and is not intended to address
the circumstances of any particular individual or entity. Although we endevour to
provide accurate and timely information, there can be no gurantee that such
information is very accurate and considers the latest amendment in laws which are
very frequent. The above is purely for academic reading and general awareness of the
law. No one should act on this information with appropriate professional guidance
which requires a thorough exemation of a particular situation.
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