Goods Transport Agencies (GTA) New GST Rate and declaration on the invoice applicable from 18/07/2022

Goods Transport Agencies GST Rate :

The 47th GST Council meeting was held on 28 and 29 June 2022, in this meeting CBIC has notified the amendments in the GST rates applicable to the Goods Transport Agencies (GTA) from 18th July, 2022.

The goods transportation agency is given the choice from two options whether

1. Pay GST at 5% (Without ITC) or 12% (With ITC) under the forward charge; the choice must be made at the start of each new year. 

Or

2. They will not pay GST for services supplied by them in others words recipient is liable to pay tax under RCM basic.

• Relevant Notification

Notification No. 03/2022- Central Tax (Rate)

• GTA Declaration :

1. When a GTA chooses to pay GST on a forward charge basis, a declaration in accordance with Annexure V must be submitted to the jurisdictional officer before the commencement of the financial year.

2. If the transporter has issued a tax invoice to the recipient charging GST at the applicable rates and the transporter should give the declaration on the invoice.

Declaration

I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax on services of GTA in relation to transport of goods supplied by us during the Financial Year 

_____ under forward charge.”.

• Relevant Notification

Notification No. 05/2022-CentralTax (Rate)