Provision in Act:
- Any Services provided or agreed to be provided by a goods transport agency (GTA)
- In respect of transportation of goods by road
(a) any factory registered under or governed by the Factories Act, 1948;
(b) any society registered under the Societies Registration Act, 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 CGST/SGST/UTGST Act;
(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.
(g) Casual taxable person
Shall pay GST on reverse Charge basis.
From above, we can see that an individual/proprietorship firm, HUF who is not registered under CGST/ SGST/ UGST Act is not covered in the specified category
It means, if the freight is paid by an unregistered individual/proprietorship firm or HUF then the service tax thereon shall be paid by the GTA itself.
There is no concept of Partial reverse charge in GST, So 100% tax will be paid by the specified recipient.
However exemption is provided to following services provided by GTA by way of transportation of a goods carriage of :
- Agriculture produce
- Milk, salt and food grain including flour, pulses and rice.
- Organic manure
- Newspaper or magazine registered with the registrar of newspapers
- Relief materials meant for victims of natural or manmade disaster, calamities, accidents or mishaps
- Defence or military equipment
- Where gross amount charged on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
- Where gross amount charged for all such goods for a single consignee does not exceed rupees seven hundred fifty.