Even composition dealers are liable to pay GST under RCM. Anand will pay GST on RCM if he hires a GTA whether he is registered as a composition dealer or as a normal dealer….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Transporting goods (GST paid by GTA)* | 5% No ITC or 12% with ITC |
What service of transportation of goods is exempt under GST?
Thus, all transport of goods by road is exempt except in case of GTA and courier services. “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.
Is service tax applicable on transport services?
Taking into account the special nature of the goods transport agency (GTA) service, it is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. In other words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax.
Is RCM applicable on transport of exempted goods?
Please clarify whether a GTA providing service in relation to transportation of goods by road under reverse charge mechanism (RCM) can avail of the benefit of this exemption. Answer: Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.
Who is goods transport agency?
Who is a GTA – Goods Transport Agency? As per Section 65B (26) of the Finance Act, 1994; “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”.
What is reverse charge mechanism GST?
Generally, the supplier of goods or services is liable to pay GST. Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.
Is reverse charge applicable on courier services?
and same charges was paid by courier company. However, in case of courier service, provision of reverse charge is not applicable; supplier of service is required to charge tax from recipient under forward charge.
What is a goods transport agency?
(ze) “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; Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplierof service to be considered as a Goods Transport Agency.
Is ITC available on reverse charge on GTA?
Since, the recipient pays GST in this case, the GTA is not entitled to take ITC on the input goods or services used in supplying such services to the recipient. However, the recipient of GTA service discharging the tax liability is entitled to take Input Tax Credit (ITC) of the amount of tax paid under reverse charge.
