Detail Guide on GTA in GST
GTA in GST:
In this article we will cover following provisions related to GTA in GST
| Provision | Notification/Section |
| Exemptions on transportation |
Notification No. 12/2017- Central Tax (Rate) Notification No. 9/2017-Integrated Tax (Rate) |
| Coverage of GTA in RCM | Notification No. 13/2017- Central Tax (Rate) |
| Denial of ITC to GTA | Notification No. 11/2017-Central Tax (Rate) |
| Tax rate on GTA services | Notification No. 11/2017-Central Tax (Rate) |
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Exemption on transportation:
Services provided by a goods transport agency, by way of transport in a goods carriage of –
(a) agricultural produce;
(b) 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;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
(h) defence or military equipments.
GTA in GST : RCM
GTA is covered in RCM in GST. It means that the tax on services provided by GTA will be paid by recipient. It is also mentioned clearly that in case of GTA services a GTA will not be eligible for any credit on goods and input services.
- GST on goods/services used exclusively in GTA supply: Full ITC reversal
- GST on Goods/ services used partially in GTA and partially in other supply: proportionate ITC reversal
Who will be liable to pay for GTA in GST:
This is also an important question. Who is liable to make payment of GTA in GST. The person who is liable to make payment to GTA will be liable for the payment of Taxes also.
“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.”
(11/2017)
Transportation by a person other that GTA is exempted and will not be liable for taxes.
Heading 9965 (Notification No. 12/2017 CGST)
Services by way of transportation of goods-
(a) by road except the services of—
(i) a goods transportation agency;
(ii) a courier agency;
(b) by inland waterways.
When the supplier will make the payment of GTA he will be liable for taxes also. In cases where the to paid bilty is there the recipient will be liable to pay in RCM.
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CA Shafaly Girdharwal
CA
New Delhi, India
CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.
