GST on Goods Transport Agency, REVERSE Charge on GTA

We will discuss applicability of GST and availability of ITC on GTA and Freight. Before starting our discussion on Goods Transport Agency (GTA), Let’s first understand that who is a GTA under GST. Well, the answer to this question is given in Para 2 of N/NO. 12/2017 CT(R) and N/NO. 9/2017 IT(R) dated 28/6/2017, and as per the above said notification GTA means any person who provides services in relation to transportation of goods by road and issue consignment note (builty) is a GTA.

# Reverse Charge on GTA
# Gst on GTA
# Gst on GTA by CA Kavita
# Gst on GTA by CA Kavita Dhingra
# Reverse Charge on Goods transport Agency
# GST on on Goods transport Agency

After reading the above Para one question must arise in your mind i.e., why it is important to understand that who is a GTA? So, friends it is important to understand because services by way of transportation of goods by road except the services of:-
GTA
COURIER
Are exempt from GST vide (entry no. 18 of E/N 12/2017 CT (R) dated 28/6/2017). So, it is clear that services by way of transportation of goods by road by GTA is taxable in GST

Now there is another exemption to GTA’s vide (entry no. 21 of E/N 12/2017 CT (R) dated 28/6/2017) if GTA provide services of transport in goods carriage of certain category of goods.

Further, if Goods Transport Agency under GST provides services by way of transportation of goods to any unregistered person than the services of GTA are exempt Entry no. 21A of E/N/25/2017 CT (R) dated 28/6/2017.

Rate of Tax for Goods Transport Agency under GST
The Government has prescribed two rate of tax for GTA i.e.
(a) 5% (In case of Reverse Charge)
(b) 12% (In case of Forward Charge)