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GTA

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JALO7O47O4F Arnab Barman
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5 views

GTA

Uploaded by

JALO7O47O4F Arnab Barman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Goods

Transport
Agency
GOODS TRANSPORT SERVICE

AGENDA
Definitioin iof GTA
Cioinsiginmeint Niote
TAX uinder RCM
Recipieint iof service uinder RCM
Exemptioin iof GST fior GTA
Registratioin
POS iof Trainspiortatioin by GTA
GST Rate fior GTA
ITC
GST on Transportation of Goods
by Road
“ As Exemption Notifcation -12-2017 dated 28 June 2017

Paragraph 1 Serial No. 18 – Service by way of

transportation of goods by road is exempted except the

services of Goods Transport Agency and courier

agency”.

Defnition of GTA:
As “Notifcation 12-2017 dated 28 June 2017 Paragraph 2
any person who provides service in relation to transport
of Goods by road and issues consignment note, by
whatever name called, because consignment note is
even issued by transport owners.
What is consignment Note?

Document Issued when goods are received by GTA for


the purpose of transport of goods by roads in a goods
Carriage.

Contents of Consignment Note:


• Name iof the Cioinsiginior
• Name iof the cioinsiginee
• Registratioin inio. iof Vehicle
• Details iof Gioiods
• Place iof Origiin
• Place iof destinatioin
TAX under Reverse Charge
Mechanism

As per Notifcation No. 13/2017- Central Tax (Rate) dated

28.06.2017, Central Government has notifed the applicability of

reverse charge on GTA .

Supply of services by a goods transport agency (GTA) in

respect of transportation of goods by road to-


1. Any factory registered under or governed by factories Act, 1948(63 of

1948); or

2. 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

3. Any co-operative society establish by or under any law; or


Tax under Reverse Charge
Mechanism

4. Any person registered under the Central Goods and


Services Tax or the Integrated Goods and Services Tax Act
or the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act; or

5. Any-body corporate established, by or under any law; or

6. Any partnership frm whether registered or not under any


law including association of persons; or

7. Any casual taxable person.


Recipient of services under RCM
“ The person who pays or is liable to pay freight for the
transportation of goods carriage, located in the taxable territory
shall be treated as the person who receives the service for the
purpose of this notifcation(notifcation no )”.
 The person who is liable to pay will be the service recipient and he
may be either the consigner or the consignee.

Supply iof gioiods Recipieint iof gioiods


Supply iof gioiods
(cioinsiginer) (cioinsiginee)

GTA

 If the liability of payment of freight to GTA is of supplier of Goods


(Consigner),then that supplier/Consigner will be treated as the
recipient and if he is covered under aforesaid (a) to (g) category,
then that supplier needs to discharge GST on reverse charge basis.
GST will not be charged under
which circumstances?
 Goods transported are agricultural produce, milk, salt, food grain
including four, 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, defense or military equipment.
 If the consideration charged for transportation charges(freight) to a
single consignee does not exceed Rs. 750/- for all the goods
transported.
 If the consideration charged for transportation charges(freight) of a
consignment in a single carriage does not exceed Rs. 1500/- .
 If the consideration charged for transportation charges(freight)
does not exceed Rs. 5000/- per day for intra state supplies of goods
or services or both to a registered person by a supplier (whether
registered or not). (vide notifcation no. 8/2017-dated 28th June
2017).
Registration for GTA

“ When GTA is required to take

registration?”
As per Section 22(1) of CGST Act, 2017 “ once aggregate turnover of a

GTA exceeds Rs. 20 Lakh, he is compulsorily required to take registration.

Compulsory Registration
As per section 7 of IGST where the location of supply and place

of supply is in diferent state

Is iin --------- place


Location of supplier of service Iinterof supply
differeint state
state supply
Rule for Place of Supply for Transportation
of goods by road by GTA

 If that supply is to a registered person, place of


supply will be ‘location of such person’.

 If that supply is to a person other than a


registered person, place supply will be ‘
location at which such goods are handed over
for their transportation’
Registration exemption for GTA
No Registration required for person whose supplies are
fully exempted:

• Section 23(1) of CGST Act, 2017 the following person is not


required to take registration:
‘any person engaged exclusively in the business of supplying
Goods or Services or both that are not liable to tax or
wholly exempt from tax under this Act or under the
Integrated Goods and Services Tax Act.’

Registration is not required if GTA is exclusively


supplying goods and services, The total tax on which is
required to be paid by recipient under RCM, even if his
turn over exceeds Rs. 20 Lakh.
What accounts and records needs to
maintained by GTA?
 As per section 35(2), every transporter, irrespective of
whether he is a registered person or not, shall maintain
records of the consigner, consignee and other relevant
details of the goods in such manner as may be
prescribed.
 If Transporter is not registered, then he shall submit the
details regarding his business electronically on the
common portal in form GST ENR-01 and upon validation
of the details furnished, a unique enrollment number
shall be generated and communicated to the said person.
 Any person engaged in the business of transporting
goods shall maintain records of goods transported,
delivered and goods stored in transit by him along with
GSTNIN of the registered consigner and consignee for
each of his branches.
What invoices/consignment note will
be required to be issued by GTA?
Where the supplier of taxable service is a goods transport
agency supplying services in relation to transportation of goods
by road in a goods carriage, the said supplier shall issue a tax
invoice or any other document in lieu thereof, by whatever name
called, containing the :
• Gross weight of the consignment,
• Name of the consigner and consignee,
• Registration number of goods carriage in which goods are
transported,
• Details of goods transported,
• Details of place of origin and destination,
• Goods and services tax identifcation number of the person liable for
paying tax whether as a consigner, consignee or goods transport
agency and ,
GST rate applicable to GTA

 The only rate applicable to GTA for providing services of transportation


of goods by road (including used household goods for personal use)
is 5%. (This will also be applicable only when the liability to pay tax
comes on GTA, otherwise in most of the cases tax will be paid by
recipient of service provided by GTA on RCM basis)
 GTA is not allowed to avail any credit of input taxes paid by them or
charged to them for any goods or services used by them for providing
transportation services.
Will GTA get any input tax
credit?

No, A Goods transport Agency will not be eligible


for any input tax credit for the taxes paid. So,
whatever liability arises needs to be discharged
through any of the payment optons allowed
under the GST law.
Recipient of services paying tax under RCM will
get ITC
Goods Transport covered under
the Headings of SAC.

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