GTA Exempt Service Validity

Hi All,

I need a clarification for the below, Kindly share your views.

1) As per Notification 20/2017-CGST, GTA who exercised the option to pay Central tax @ 6% should pay such tax on  all services provided by it.

2) As per Notification 32/2017-CGST, GTA service provided to unregistered persons should be taxed at NIL rate.

My question is whether the exemption service in (2) above  would prevail over [(1) all services] and no tax needed to be paid on such service made to unregistered persons,

 

Thanks

Kannan

Replies (1)
No Tax is required to pay by GTA to Government if the Recipient is Unregistered. It is "EXEMPTED."

As per Notification No. 32/2017 - Central Tax ( Rate ), dated 13th October 2017, Services provided by GTA to UNREGISTERED PERSONS ( other than persons required to pay tax on RCM basis u/s 9(3) ) are EXEMPTED from GST.

Hence even if the GTA has registered himself to pay tax under Forward Charge @ 12%, he will not collect any GST from the Unregistered Recipient.

Therefore exemption service of (2) would prevail over (1).

Regards,
Shivam RC.

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