Skip to main content

GST AND GOODS TRANSPORT AGENCY

Goods transport agency : Goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. A consignment note is an essential condition to be considered as a GTA.
Consignment note: A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage.
Registration requirements: IF Transports,
a) Exclusivey goods on which RCM applicable (even turnover more than Rs. 20/10 Lacs limit)       -          NO REGISTRATION
b) Turnover less than Rs. 20/10 Lacs Limit (including RCM based and service to unregistered)               -          NO REGISTRATION
c) All other cases        -          REGISTER

Rate of Tax: Options available to GTA - 12% with ITC or 5% without ITC AND 5% with ITC by Consignor/consignee at RCM Basis.
Exemptions:
The following services provided by GTA by way of transport in a goods carriage are exempt from payment of tax:
(a) agricultural produce
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1,500
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750
(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 mishaps
(h) defence or military equipment etc

Reverse Charge Mechanism:
A person paying to GTA will pay GST under RCM. (Consignor / Consignee)
The categories on which RCM applicable, include:
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948)
(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
(c) any co-operative society established by or under any law
(d) any person registered under the CGST Act, the Integrated GST (IGST) Act, the State GST (SGST) Act, or the Union Territory GST (UTGST) Act
(e) anybody corporate established, by or under any law
(f) any partnership firm whether registered or not under any law including association of persons
(g) any casual taxable person

Input Tax Credit:
-A person (consignor/consignee) paying GST under RCM will pay GST at the rate of 5% and will take ITC on the same.


-A GTA paying GST at the rate of 5%. No one will get the ITC. OR A GTA paying GST at the rate of 12%, GTA will get the ITC. (Option to opt in beginning of the Financial Year)

CGST/SGST/IGST Aplicability:
It depends on 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.
                                                                                                                                                                                                                                                
Compiled by: CA SUNIL GOEL

Labels:

Comments

Post a Comment

Popular posts from this blog

Maintenance of Book of Accounts - Section 44AA (Income Tax Act, 1961)

The provisions relating to maintenance of books of account can be classified as follows:  1. Provisions relating to a person engaged in specified profession. (44AA(1)) 2. Provisions relating to a person engaged in non-specified profession. (44AA(2)) 3. Provisions relating to a person engaged in business. (44AA(2)) Section 44AA(1) Every person carrying on : legal,  medical,  engineering or  architectural profession or  the profession of accountancy or  technical consultancy or  interior decoration or  any other profession as is notified by the Board in the Official Gazette  shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. (Note: Film Artist is also a specified profession by Department) Conclusion:- So, in the case of specified profession there is no limit for turnov...
Post a Comment
Read more

Books of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions.

Rule 6F. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist shall keep and maintain the books of account and other documents specified in sub-rule (2): [Provided that nothing in this sub-rule shall apply in relation to any previous year in the case of any person {(except specified profession under section 44AA(1)} if his total gross receipts in the profession do not exceed one lakh twenty thousand rupees  in any one of the three years immediately preceding the previous year, or, where the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount.] (2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely:— (i) a cash book; (ii) a journal, if the accounts are main...
Post a Comment
Read more

DIR - 3 KYC

DIR-3 KYC - UPDATE KYC OF DIRECTORS ANNUALLY This form will be used to update KYC of all directors as per Rule 12A every year. AS inserted by  Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 applicable w.e.f. 10 th  July 2018 { "(ii) after rule12, the following shall be inserted, namely:- “12A Directors KYC:- Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year. Provided that every individual who has already been allotted a Director Identification Number (DIN) as at 31st March, 2018, shall submit e-form DIR-3 KYC on or before 31st August, 2018.”; " } APPLICABILITY: Every Director who has been allotted DIN on or before 31st March, 2018, would be mandatorily required to file form DIR-3 KYC on or before 31st August, 2018, an...
Post a Comment
Read more