WHAT ARE THE PROVISIONS RELATED TO GTA SERVICES UNDER GST?

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Goods Transport Agency has not been defined in GST Act. However, notifications related to provisions regarding GTA services have been issued by Central Tax 2017 on various dates. An attempt has been made to compile these notifications in one place & simplify the provisions   of GTA services in GST regime.

GTA (GOODS TRANSPORT AGENCY) is any person or group who provide services in relation to transportation of goods by ROAD and issues.

CONSIGNMENT NOTE: The consignment note is a serially numbered document issued by a Goods Transport Agency (GTA) against receipt of goods for transportation. It contains following details:

1. Name of consignor & consignee

2. Registration No. of the goods carriage (vehicle) in which the goods are transported

3. Details of goods

4. Place of origin & destination

5. Person liable for paying GST (Consignor, consignee or the GTA)

LIABILITY TO PAY GST

The recipient of services is required to pay GST under Reverse Charge Mechanism (Notification No. 13/2017 dt 28 June 2017 is relevant) for services provided by GTA to following category of person:

  1. Factory  registered under the Factories Act 1948

  2. A Society registered under the Societies Registration Act 1860 or under any other law.

  3. A Co operative society established under any other law.

  4. A Body Corporate by or established under any law

  5. A partnership firm (Registered or Unregistered )

  6. Casual taxable person payer

  7. A person registered under GST

Note:  GTA is liable to pay GST for services provided to an individual or unregistered person only. For all 7 categories stated in Para 3 above, liability of GST shall be paid by recipients.

RECIPIENT OF SERVICES

(a) The person who pays or is liable to pay freight for transportation of goods by road will be treated as the recipient of service.

(b) Supplier (consignor) of the goods will be treated as recipient of services, if he/she is liable to pay freight.

(c) Receiver (consignee) of the goods will be treated as recipient of services, if he/she is liable to pay freight.

GTA’S LIABILITY TO REGISTER UNDER GST

  1. A GTA does not have to register under GST if, they are exclusively transporting goods to the person as indicated at Para 3 above.

  1. As per Notification 05/2017 –Central Tax dated 19/06/2017, a person is exempted from registration under GST if, they are exclusively engaged in making supplies of taxable goods/services where the total tax  is liable to be paid  by the recipient on RCM basis.

  1. However, if GTA is also providing services to unregistered dealer in addition to the person  specified vide notification 13/2017, they are liable to register if their aggregate turnover exceeds Rs. 20 lakh (even if aggregate turnover consists of only Rs 2 Lakh from unregistered and balance Rs. 19 Lakhs from Notified person)

Now hope you understand the provisions related GTA services under GST, if you have any queries, please contact us.

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