Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 24-8-2017 – Introduction: This article discusses in detail about GT place of supply GTA and nature of its taxability under GST. Query 1: 'A', a buyer registered in Andhra Pradesh receives GTA services from VRl Logistics which is registered in Telangana by way of Transportation of Goods from 'B' who is a registered Dealer in Tamil Nadu. In this Case how the GST is paid under Reverse Charge Mechanism. Query 2: If transporter is registered & he do not charges GST than is it duty of consignee pay GST & get input credit of GST. And, if transporter is not registered & he sends goods from Delhi to Agra & no GST is charged, now is it duty of consignee to pay GST. Please advise the whether IGST or CGST/SGST is to be deposited? Ans: As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, goods transport agency or GTA means any person who provides service in relation to transport o
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₹ 750. Is a GTA liable to register? As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is only engaged in making supplies of taxable goods/services, where the total tax on which is liable to be paid on reverse charge basis by the recipient as the category of persons exempted from obtaining registration under GST. Thus, a GTA does not have to register under GST if he is exclusively transporting goods even if the turnover exceeds 20 lakhs as the total tax is required to be paid by the recipient under reverse charge basis. Services Turnover GST Paid by Case I Transporting goods of registered dealers or any of the 8 items as mentioned above 12 Lakhs Registered dealer or recipient of services under RCM Transporting goods of unregistered persons 4 Lakhs No one Total Turnover 19 Lakhs Aggregate turnover being less than 20 Lakhs, GTA is not required to be registered. Case II Transporting goods of registered dealers or any of the 8 items as mentioned above 19 Lakh
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y other law A co-operative society established under any law A person registered under GST A body corporate established by or under any law; or A partnership firm whether registered or not (including AOP) Casual taxable person Who will pay under Reverse Charge Basis? As per Notification No. 13/2017- Central Tax dated 28/06/2017, the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage & located in the taxable territory shall be treated as the receiver of service. What if, the payment is made by sender? If the supplier of goods (consignor) pays the GTA, then the sender will be treated as the recipient & he will pay GST on reverse charge basis. What if, the payment is made by receiver? If the liability of freight payment lies with the receiver (Consignee), then the receiver of goods will be treated as a receiver of transportation services & will pay GST on reverse charge basis. Situations showing who is liable to pay GST in cas
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vidual B GTA (If GTA is registered) Rate of Tax GTA can opt for 12% GST with ITC or 5% GST with no ITC. However, the GTA has to give an option at the beginning of financial year. Input Tax credit for the recipient of GTA services In case of reverse charge, the person responsible for paying tax is the service recipient who is not supplying the GTA service so the concern of using any inputs to supply GTA service does not arise in his case. He is liable to pay GST only because of RCM. So GST paid on GTA under RCM can be availed as ITC by the person paying the tax Place of Supply As per section 12(8) of IGST Act 2017, the place of supply of services by way of transportation of goods, including by mail or courier to- (a) a registered person, shall be the location of such person (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. So in the given query, The place of GTA supplier is Telengana & The place of supply
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he person liable for paying tax whether as consigner, consignee or goods transport agency Name, address and GSTIN (if applicable) of the GTA Tax invoice number (it must be generated consecutively and each tax invoice will have a unique number for that financial year) Date of issue Description of service Taxable value of supply Applicable rate of GST (Rates of CGST, SGST, IGST, UTGST and cess clearly mentioned) Amount of tax (With breakup of amounts of CGST, SGST, IGST, UTGST and cess) Whether GST is payable on reverse charge basis Signature of the supplier Returns to be Filed by a GTA If all the services of the GTA fall under RCM then a GTA is not required to register. If a GTA registers, then it will have to file the normal 3 monthly returns – GSTR-1 (sales), GSTR-2 (purchases-no ITC available) & GSTR-3 (monthly summary & tax liability). FAQs on GTA Rahul hired a GTA to transport his goods. The consideration charged was ₹ 1,200. Will Rahul pay GST? Rahul will not pay GST
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registered under GST. The GTA demands that Ram should pay tax under RCM. Ram argues that since he is not registered, he does not have to pay any GST. Ans: Only the persons above (Notification No. 13/2017- Central Tax (Rate) dated 28th June, 2017) are required to pay GST under RCM. Unregistered dealers (Ram) purchasing goods/services from unregistered GTA do not have to pay GST under reverse charge mechanism. If the URD hires from a registered GTA, then the registered GTA is liable to pay GST. So, Ram is not liable to pay GST under RCM. Ram now purchases garments from Assam and pays for a truck to deliver the goods to his shop in Kolkata. The GTA says that Ram has to register for GST as he is making an inter-state purchase as only registered dealers can have inter-state trade. Ans: An unregistered person can make inter-state purchases. For making inter-state sales, he will have to be compulsorily registered. Since Ram is an unregistered dealer and the GTA is also unregistered then the
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