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GTA services to URD dealer

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Anshuman Basu

account -GST

1181 Points Posted on 26 April 2020

Can a Registered GTA services provider make invoice @ 12% on foroward basis to URD service Receiver?
What is the GST tax treatment on Registered GTA to URD

Replies (4)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) treatment for services provided by a registered Goods Transport Agency (GTA) to an Unregistered Dealer (URD). While a GTA can typically invoice at 12%, an exemption under Notification 12/2017 often applies to services provided to URDs. However, this exemption has specific conditions; if the URD is a factory-registered entity, a society, a co-operative society, a body corporate, or a partnership firm, the GTA can charge 12% GST. Otherwise, the service is generally exempt.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 26 April 2020

It's Exempted as per Notification 31/2017 CT (r)

CA Altamush Zafar

GST Consultant

10402 Points Posted on 26 April 2020

GTA can charge forward rate of 12%. But there is an exemption under 12/2017 where transport service by GTA to URD is exempt except for certain conditions. If your case falls under those conditions you can charge 12% otherwise it is exempt.

Anshuman Basu

account -GST

1181 Points Posted on 26 April 2020

Thanks sir but I want to know "certain conditions. If your case falls under those conditions you can charge 12% otherwise it is exempt." Pl clarify the conditions where registered GTA can charge 12% to URD

CA Altamush Zafar

GST Consultant

10402 Points Posted on 27 April 2020

Check entry 21A of the notification 12/2017 as amended. The entry was added through Notification 32/2017. The entry exempts GTA services to URD except where URD is factory registered under factories act, societies registered under societies registration act, co-operative society formed under any law, body corporate formed under any law and partnership firms.

Therefore GTA services provided to URD apart from above will be exempt.