Goods transport agency

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This discussion clarifies whether a private limited company providing transport services and issuing consignment notes can be classified as a Goods Transport Agency (GTA). It confirms that such entities can indeed be called GTAs. The conversation also delves into GST implications, explaining that while GTAs typically charge GST under the forward charge mechanism (often at 12%), the recipient may be liable under reverse charge in specific scenarios, particularly for lower GST rates. Services provided by non-GTAs are generally exempt.

sankar ponnan

sankar ponnan (Querist)
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03 August 2020 Sir
I am the director of private limited company and supplying transport service for others and issuing the consignment note as per its definition.Can I call me as GTA.

If yes, can I charge GST on the transportation services provided by me as we GTA?

What I under stood by the following notification that any services provided by goods transport agency (GTA) is taxable and services provided by other than GTA is exempt under GST.

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Give me a clear explanation regarding exemption under the Notification No.12/2017- Central Tax(Rate)
Entry No.18
Heading 9965
Services by way of transportation of goods-
(a) by road EXCEPT the services of—
(i) a GOODS TRANSPORTATION AGENCY;
(ii) a courier agency;
*****

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 August 2020 Yes, you can call you as GTA.
For your services GST payable by recipient under RCM.
As GTA you can charge 12% GST under forward charge and claim ITC on truck purchase.
Transport services provided by other than GTA is exempt from GST.

sankar ponnan

sankar ponnan (Querist)
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03 August 2020 thank you sir
and one more confusion is,
I charge GST @ 12% on my customers by forward mechanism and collect it then, I pay it after adjusting with ITC. Why should the recipient pay under reverse charge.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 August 2020 In such a case recipient will not pay under RCM.
Only in 5% case RCM applicable.

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