GTA TAX clarification
This query is : Resolved
27 January 2022
Registered under GTA but do not have own vehicles, as and when requirement is there vehicles are taking from market from unregistered agents / brokers etc.
unregistered agents / brokers etc. they are not providing any consignment note with bills.
Un registered agents / brokers / owners etc. bill to registered GTA without any tax ... is this correct and when GTA billed to customers, they bill with GST 5% under RCM along with consignment note. In some case GST 12% under RCM to claim ITC by customers.
Is tax applicable when registered GTA taking vehicles from UR agents etc. and supply to another GTA, i.e., GTA billed to GTA both are registered
unregistered agents / brokers etc. they are not providing any consignment note with bills.
Un registered agents / brokers / owners etc. bill to registered GTA without any tax ... is this correct and when GTA billed to customers, they bill with GST 5% under RCM along with consignment note. In some case GST 12% under RCM to claim ITC by customers.
Is tax applicable when registered GTA taking vehicles from UR agents etc. and supply to another GTA, i.e., GTA billed to GTA both are registered
27 January 2022
in terms of notification no 12/2017 -CT (rate) dated 28.06.2017 there is no GST liability in case of services by way of giving on hire to a GTA. Thus there is no GST in case of hiring from unregistered and from one registered GTA to another registered GTA.
27 January 2022
there are three question in your query:-
1. whether hiring of vehicle by GTA from unregistered vendors is taxable or exempt
Ans- It is exempt under notification no. 12/2017 and you are correct in doing so.
2. Rate of GST applicable when GTA raise the bill to customer
Ans- GST is payable @5% without claiming input credit on input/input service or 12% with the claim of input tax credit. Further, GTA have the option to pay liability either under forward charge or to shift the liability on service recipient under RCM. But once the option availed, it can't be changed during a financial year. Therefore, paying the Tax under forward charge on few and under RCM on few others invoice is totally incorrect and will lead to additional demand.
3. Applicable of GST from one GTA to another GTA;
Ans- It is exempt under notification no. 12/2017
1. whether hiring of vehicle by GTA from unregistered vendors is taxable or exempt
Ans- It is exempt under notification no. 12/2017 and you are correct in doing so.
2. Rate of GST applicable when GTA raise the bill to customer
Ans- GST is payable @5% without claiming input credit on input/input service or 12% with the claim of input tax credit. Further, GTA have the option to pay liability either under forward charge or to shift the liability on service recipient under RCM. But once the option availed, it can't be changed during a financial year. Therefore, paying the Tax under forward charge on few and under RCM on few others invoice is totally incorrect and will lead to additional demand.
3. Applicable of GST from one GTA to another GTA;
Ans- It is exempt under notification no. 12/2017
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