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GTA can raise the bill with tax @5%?

Vijay Kumar (1 Points)

27 May 2018

GTA can raise the bill with tax @ 5%?
my view is No payment of tax for GTAs is recipient liability...

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11 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 27 May 2018

Originally posted by : Vijay Kumar
	GTA can raise the bill with tax @ 5%?my view is No payment of tax for GTAs is recipient liability...

Under GTA

Tax Liability to pay Tax is Recipient

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 May 2018

No need to charge GST 5% as recepient is liable do RCM on GTA services (As recepient can refuse to pay GST 5% charged by GTA)

Divakar (Student CA Final ) (11857 Points)
Replied 27 May 2018

Yes GTA can charge 5% gst without itc and 12% gst with itc in forward charge.... When GTA is not charging gst then recipient is liable to pay RCM @ 5% on same under section 9(3)

1 Like

Vinod Babu (24191 Points)
Replied 27 May 2018

Well said sir, agree with you.

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 28 May 2018

BUT GTA is not liable to charge GST 5% ,(As per Notification 13/2017) in any case Recepient is liable to do RCM , yes As per Notification 20/2017 if GTA Forward Charge @ 12% (availing ITC ) the Recepient' can avail ITC for the same.

So , if GTA does not charge GST or charge GST 5% in both the condition Recepient is liable for RCM ,

Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

GTA has given both the option in forward charge either charge 5% gst without itc or 12% gst with itc... Even GTA r not liable to get registration in GST as exemption provided him.... But its optional for GTA....

Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

When GTA has not charged gst om bill then recipient has to pay gst @ 5% under rcm.... When they charge it in forward charge then what is need

Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

GTA has 2 options- 12% GST with ITC * OR 5% GST with no ITC* However, the GTA has to opt at the beginning of financial year. *As per Notification No. 20/2017-Central Tax (Rate) 22nd August, 2017

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 28 May 2018

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust, 2017hether GTA Services are Taxable Supplies?

Wilson (M) (24 Points)
Replied 27 November 2018

Sir,

Opting of GST ITC with Forward Charge @ 12%

You have stated in a Query / Reply that:

"However, the GTA has to opt at the beginning of financial year."

Where this has been specified whether in Notification/Circular. Request you to share the same as no such wording found in Notification No.20/2017 dated 22-Aug 2017

Thanks

Wilson.A