CBEC Explains About Applicability of GST Provisions on Goods Transport Agency (GTA)
The CBEC has released a booklet to explain the provisions under GST which are applicable to Goods Transport Agency (GTA), particularly about definition of GTA, applicable rate of GST, eligibility for ITC, persons liable for payment of tax, levy of GST on GTA Services, liability under reverse charge, exempt GTA services, etc., as under:
IT may be noted that for the purpose of GST, it has been recognised that Transport of Goods by Road can’t be treated as GTA Service is all the cases unless a Consignment Note is issued by the Agency, as only the services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
Moreover, in cases where the service of GTA is availed by the specified categories of persons in the taxable territory, the recipients who avail such services are the ones who are liable to pay GST and not the supplier of services unless the GTA opts for collecting and paying taxes @ 12% (6% CGST + 6% SGST).
In all other cases where GTA service is availed by persons other than those specified, the GTA service supplier is the person liable to pay GST. The GTA service supplier is not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST).
In case the GTA service supplier hires any means of transport to provide his output service, no GST is payable on such inputs.
Provisions in this regard are similar to those under Service Tax Law. In view of the fact that services of pure transportation of goods are mostly provided by the unorganised sector and hence the same has been excluded specifically from the GST scope. However, in respect of those who provide agency services in transport, the liability is cast on the recipients in most of the cases or unless option to pay under forward charge has been exercised by the GTA.