Who and how much amount of GST is required to be paid in case of services provided by GTA by way of transportation of goods by road
Legal Provision
As per Notification No. 12/2017- Central Tax (Rate)
1. Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries)
2. Services provided by a goods transport agency, by way of transport in a goods carriage of –
(a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
(h) defence or military equipment.
3. Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the following recipients, namely any –
a) Factory registered under or governed by the Factories Act, 1948 (63 of 1948); or
b) Society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
c) Co-operative Society established by or under any law for the time being in force; or
d) Body corporate established by or under any law for the time being in force; or
e) Partnership firm whether registered or not under any law including association of persons;
f) Casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.
4. Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to, -
a) A Department or Establishment of the Central Government or State Government or Union territory; or
b) local authority; or
c) Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.
(d) milk, salt and food grain including flour, pulses and rice;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(h) defence or military equipment.
b) local authority; or
c) Governmental agencies,
As per Notification No. 13/2017- Central Tax (Rate)
Supply of Services by a goods transport agency (GTA) in respect of transportation of goods, who has not paid central tax at the rate of 6%, by road to
(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person; located in the taxable territory.
Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, -
(a) a Department or Establishment of the Central Government or State Government or Union territory; or
(b) local authority; or
(c) Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.
Understanding
Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, -
Understanding
As per deep reading of exemption notification 12/2017, we can conclude that service of transportation of goods by road provided by GTA is exempt from tax except in some situation. And these situations are as follow:
(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person; located in the taxable territory.
But when we ready notification no.13/2017 - Central Tax (Rate), it clearly specify that in case GTA did not charge the tax of 6% then the tax is payable by recipient of service.
Recipient of service for this is 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 person.
Conclusion
Conclusion
