Know Everything About Goods Transport Agency (GTA) Under GST!

1. Services provided or agreed to be provided by a Goods Transport Agency (GTA) In respect of transportation of goods by road to:

• any factory registered under or governed by the Factories Act, 1948;
• any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;
• any co-operative society established by or under any law;
• any person registered under the CGST/SGST/UTGST Act;
• anybody corporate established, by or under any law; or
• any partnership firm whether registered or not under any law including association of persons.
• Casual taxable person

shall pay GST on the reverse Charge basis.

2. The exemption is provided to following services provided by GTA by way of transportation of a goods carriage of:

• agricultural produce, milk, salt, flour, rice & pulses & Organic manure
• Newspapers or magazines registered with the registrar of newspapers
• Relief materials meant for victims of natural or manmade disaster calamities, accidents or mishaps
• Defence or military equipment
• Where gross amount charged on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
• Where the gross amount charged for all such goods for a single consignee does not exceed rupees seven hundred fifty.

3. The government of India via notification no.13/2017 has been kept the GTA services under complete reverse charge. Reverse charge means that GTA is not liable to pay any tax rather the company which is the recipient of the services shall pay the GST in cash to the government.

In simple words, GTA service providers in respect of transportation of goods by road shall not be liable to pay GST.

4. The GST tax rate for GTA services is 5% and shall be paid under reverse charge.
5. The ITC on GST paid on GTA services under the reverse charge shall be available to the person who is liable to pay the GST. This is because the GTA service is treated as an input service and hence any tax paid on input service is available for ITC.
6. If in case the GTA services are provided to an unregistered dealer then GTA service provider shall be liable to pay GST and register himself under GST. Further, the GST tax rate shall be 5% in case he is not availing any ITC.

However, if he chooses to avail ITC, the tax rate shall be 18%.