A Goods Transport Agency (GTA) means any person who is engaged in the business of providing services with respect to transportation of goods by road.
Such agency is required to pay GST at the rate of 5% (without claiming ITC) or at the rate of 12% (with claiming ITC) under forward charge. Where a GTA does not opt to pay GST under forward charge at the rate of 12% then such liability to pay GST at the rate of 5% is to be borne by the recipient of service under Reverse Charge Mechanism by specified person
Where a GTA opts to pay the tax under forward charge mechanism, such GTA is required to file an online declaration in Annexure V Form on the GST portal. Such declaration is to be filed for every financial year before 15th March of the preceding financial year. Once such option to file tax under forward charge is exercised by the GTA by filing the Annexure V online, such filed form cannot be withdrawn for the said financial year.
To file this Form of Annexure V, the user shall have to login to the GST portal and navigate to Services > User Services > Opting Forward Charge Payment by GTA (Annexure V) and submit the form.
Any GTA opting to pay tax under forward charge mechanism and have filed the form in Annexure V on the GST portal shall indicate the same on the invoice that shall be issued to the recipients of the service. Any GTA which provides services in multiple states has an option to select to pay tax on forward charge in one or more states and pay tax under reverse charge mechanism for other state/s.
Jitesh Telisara & Associates LLP, CA In Viman Nagar is a professionally managed firm catering to domestic and international clients with a broad range of services in domestic and international taxation, regulatory and advisory services and crosses border transaction-related services.
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