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Goods Transport Agency (GTA) services before and after 18th July 2022.

Rates for Goods Transport Agency (GTA)
[upto 17th July 2022]

Upto 17th July 2022, GTA had two options as below:

(A) 5% under Reverse Charge (Without ITC), or

(B) 12% under Forward Charge (With ITC)

Option (A) -  5% under Reverse Charge (Without ITC)

Under this option, GTA could have opt for Reverse Charge and transfer the liability to pay GST @ 5% to the recipient of service. GTA was not allowed to claim his input ITC under this option.

However the recipient was allowed to claim ITC after paying GST @ 5% under RCM. (Provided the recipient is not otherwise restricted to claim ITC e.g. freight on taxfree goods cannot be claimed or if claimed, then reversal is required by recipient).

Option (B) - 12% under Forward Charge (With ITC)

Under this option, GTA could have opt to pay GST at its own @ 12% under Forward Charge. GTA was allowed to claim his input ITC under this option.

And the recipient was also allowed to claim ITC for the 12% GST paid to GTA against tax invoice. (Provided the recipient is not otherwise restricted to claim ITC e.g. freight on taxfree goods cannot be claimed or if claimed, then reversal is required by recipient).

Rules for Goods Transport Agency (GTA)
[form 18th July 2022]

From 18th July 2022, GTA had three options as below:

(A) 5% under Reverse Charge (Without ITC), or

(B) 12% under Forward Charge (With ITC)

(C) 5% under Forward Charge (Without ITC)

Ref. Rate Notification - Notification No.11/2017 - CT(R) dated 28.06.2017 as amended vide Notification No.03/2022 - CT(R) dated 13.07.2022

Ref. RCM Notification - Notification No.13/2017 - CT(R) dated 28.06.2017 as amended vide Notification No.05/2022 - CT(R) dated 13.07.2022

GTA exemption on small consignments also withdrawn from 18th July 2022:

Following clauses have been omitted from exemption notification for GTA w.e.f.18.07.2022. 

21(b) - goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1500/-

21(c) - goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750/-

Ref. Exemption Notification Notification No.12/2017 - CT(R) dated 28.06.2017 as amended vide Notification No.04/2022 - CT(R) dated 13.07.2022

Option (A) -  5% under Reverse Charge (Without ITC).

Under this option, GTA could can opt for Reverse Charge and transfer the liability to pay GST @ 5% to the recipient of service. GTA is not allowed to claim his input ITC under this option. .......
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Author:

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Jul 19, 2022

Comments


Taxpayers in the regime of inverted structure won't opt of GTA preference at 12% ITC credit
By: Ca V Raghavendran
Jul 22, 2022
↳
Replied to CA V Raghavendran
WE ARE MANUFACTURER AND AVAILING ROAD TRANSPORT SERVICES FROM UN REGISTERED TRANSPORTER FOR L0CAL TRIPS OR BOOKING OF GOODS AT TRANSPORTERS GODOWN .

NOW EXEMPTION OF RS 1500/- AND RS 750/- IS WITHDRAWAL AND SOME TRANSPORTE ARE UPLOADEDIN THERE TAX INVOICES ON GSTR 1 UNDER RCM CATAGERY.

IN THIS CASE WHAT IS OUR STAND ? WHETHER WE HAVE TO GST ON SUCH SERVICES UNDER RCM AT 1% AND AVAIL ITC IS IT CORRECT
By: Shivaji
Jul 25, 2022
↳
Replied to SHIVAJI
Yes, RCM will be applicable on such petty invoices also.
By: Taxreply
Aug 9, 2022


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