Master in Accounts & high court Advocate
9610 Points
Posted on 06 September 2024
That's correct! When a Goods Transport Agency (GTA) provides services to another GTA, it is considered a taxable supply under GST. Since both GTAs are registered, the tax liability would arise under the forward charge mechanism. Here's a summary: - Service provider: GTA ( Goods Transport Agency) - Service recipient: GTA (Goods Transport Agency) - Taxability: Taxable under GST - Tax liability: Forward charge (the service provider, GTA, is liable to pay GST) In this scenario, the GTA providing the services would need to: 1. Charge GST on the services provided 2. Collect GST from the service recipient (the other GTA) 3. Deposit the GST amount collected into the government's account 4. File GST returns (GSTR-3B and GSTR-1) to report the taxable supply and GST paid Note that the GST rate would apply as per the prevailing rates for transportation services.