GST Rate On Goods Transport Agency (GTA)
GST Rate On Goods Transport Agency (GTA)
Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no.12/2017-Central Tax (Rate) dated 28.06.2017. (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
Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. As a corollary, the services provided by such individual transporters 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.
Meaning of Consignment Note : –
Consignment Note is neither defined in the Act nor in the notification no.12/2017-Central Tax (Rate). Guidance can be taken from the meaning ascribed to the term under the 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 of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.
A consignment note is serially numbered and contains following major points : –
- Name of consignor
- Name of consignee
- Registration number of the goods carriage in which the goods are transported
- Details of the goods
- Place of origin
- Place of destination.
- Person liable to pay GST – consignor, consignee, or the GTA
GST Rate On GTA ( Goods Transport Agency ) Services : –
Option 1 – No Input Credit Availed
The GST tax rate for GTA services is 5% ( i.e. 2.5% CGST & 2.5% SGST )
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken.
credit of input tax charged on goods or services used partly for supplying such service 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 subsection (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made there under.
Option No. 2 – Avail Input Tax Credit
The GST tax rate for GTA services is 12 % ( i.e. 6 % CGST & 6 % SGST )
Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.”
Notification No. 20/2017-Central Tax (Rate)
Reverse Charge On Goods Transport Agency GTA services
The liability to pay GST devolves on the recipients for supply of services by a goods transport agency (GTA) who has not paid central tax at the rate of 6%, in respect of transportation of goods by road(in terms of notification no. 13/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.1) as amended by notification no. 22/2017-Central Tax (Rate) dated 22.08.2017, if the recipients (located in the taxable territory)belong to the following category:
- any factory registered under or governed by the Factories Act,1948;
- 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;
- any co-operative society established by or under any law;
- any person registered under CGST/SGST/UTGST Act;
- any body corporate established by or under any law; or
- any partnership firm whether registered or not under any law including association of persons;
- casual taxable person.
Exemption Services provided by a goods transport agency, by way of transport in a goods
- agricultural produce;
- goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
- goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;
- milk, salt and food grain including flour, pulses and rice;
- organic manure;
- newspaper or magazines registered with the Registrar of Newspapers;
- relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
- defense or military equipment’s;
Where GTA Provided Services to Unregistered Dealer
Where GTA provided services to an unregistered dealer in such case GTA service provider shall be liable to pay GST and register himself under GST.
Input Tax Credit of GST Paid on GTA
Registered dealer who had availed services can avail Input Tax Credit that is paid under reverse charge on goods and services. Provided condition is that the goods and services are used or will be used for business or furtherance of business.
Where composite dealer is recipient of services of GTA then the dealer is ineligible to claim any credit of tax paid. Also , tax in this case will be paid at the normal applicable rates and not at the composition rates.
Returns to be Filed by a GTA
If all the services of the GTA fall under RCM then a GTA is not required to register.
If a GTA registers, then it will have to file the normal 3 monthly returns – GSTR-1 (sales), GSTR-2 (purchases-no ITC available) & GSTR-3 (monthly summary & tax liability).
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