Good transport agency

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Manoj (Querist)
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26 January 2022 If GTA takes on hire trucks from market and gives on hire to various companies. Then in this case Whether any liability of gst arises on GTA on the hire charges received from various company.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 January 2022 Services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax.
18% liability of gst arises on GTA on the hire charges received from various companies.

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R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)
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27 January 2022 If GTA hire the trucks from market, it is exempt under notification 12/2017. But when GTA(registered party) receive hire charges from service recipient, transaction is liable for GST at the rate of:-
i) 5% without claiming input tax credit on the input or input service
ii) 12% with the claim of input tax credit.

GTA have option to pay the GST under forward charge at the rate specified above or can shift the liability on service recipient and recipient will deposit the liability @5% under RCM.

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