let’s discuss with CA Urvi Gandhi about GTA (GOODS TRANSPORT AGENCY).
“Services by way of transportation of goods by road except for the services of GTA and Courier Agency are exempt”
WHO IS GTA- GOODS TRANSPORT AGENCY?
- Any person who provides services in relation to transport of goods by road; AND
- Issues consignment note by whatever name called
” in relation to includes all intermediary and ancillary services provided and which are included in the invoice issued by GTA”
EXEMPTED GTA SERVICES
Services provided by a GTA, by way of transport of
- Agricultural Produce
- Goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees
- Goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and 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;
- Defense or military equipment
WHO IS LIABLE TO PAY TAX?
The person who is liable to pay or pays the freight for the transportation of goods by road in a goods carriage, located in the taxable territory shall be treated as a person who receives the services
Recipient of Services is liable to pay GST when GTA provides services to the below-specified person
- Any Society registered under the respective act
- Co-operative society
- The person registered under the CGST/SGST/IGST Act
- Any Body corporate
- Partnership firm (Registered or unregistered) including AOP
- Any casual taxable person
WHAT IS GST RATE?
- 5% provided GTA has not taken ITC on goods and services used in supplying GTA service
- 12% provided GTA pays GST under Forwarding charge