01 July 2023
Please help. We are provide GTA service to India as well as Bangladesh. I have some issue regarding service provide in GST.
1. GTA registered to GTA registered within India service provide (Amount received in Rupees) GST Applicable- ? Rate-? CGST/SGST/IGST- ?
2. GTA registered to GTA Bangladesh , payment received in USD GST Applicable- ? Rate-? CGST/SGST/IGST- ?
3. GTA registered to normal GST registered company, service provide to Bangladesh but payment received from India customer in rupees GST Applicable- ? Rate-? CGST/SGST/IGST- ?
09 July 2024
Let's address your queries regarding GST applicability for GTA (Goods Transport Agency) services provided in different scenarios:
### 1. GTA Registered to GTA Registered within India - **GST Applicable**: Yes, GST is applicable. - **Rate**: 5% without ITC (Input Tax Credit) or 12% with ITC. - **Type of Tax (CGST/SGST/IGST)**: If the recipient and provider are in the same state, CGST and SGST will apply. If they are in different states, IGST will apply.
#### Example: - **Same State**: CGST 2.5% and SGST 2.5% (if opting for 5% rate without ITC) or CGST 6% and SGST 6% (if opting for 12% rate with ITC). - **Different States**: IGST 5% (without ITC) or IGST 12% (with ITC).
### 2. GTA Registered to GTA Bangladesh (Payment Received in USD) - **GST Applicable**: No, as per Section 13(9) of the IGST Act, the place of supply for transportation of goods to a place outside India is the destination of goods. Since the destination is outside India, it qualifies as an export of service. - **Rate**: Not applicable (export of service is zero-rated). - **Type of Tax (CGST/SGST/IGST)**: Not applicable.
### 3. GTA Registered to Normal GST Registered Company, Service Provided to Bangladesh but Payment Received from India Customer in Rupees - **GST Applicable**: Yes, as per Section 13(9) of the IGST Act, the place of supply for transportation of goods is the destination of goods. However, if the payment is received in INR, it complicates the status of being an export of service. - **Rate**: 5% without ITC or 12% with ITC. - **Type of Tax (CGST/SGST/IGST)**: IGST would apply since the service involves cross-border transportation (if it doesn't qualify as export of service due to payment in INR).
#### Important Considerations: - **Export of Services**: For a service to be considered an export, it must meet all conditions outlined under Section 2(6) of the IGST Act, which includes receipt of payment in foreign currency. - **GST RCM (Reverse Charge Mechanism)**: In case of GTA services, the recipient is liable to pay GST under RCM if the services are provided to specified categories of persons, including registered persons.
### References: - **Section 13(9) of the IGST Act**: [IGST Act](https://cbic-gst.gov.in/IGST-Act.html) - **Section 2(6) of the IGST Act**: [IGST Act](https://cbic-gst.gov.in/IGST-Act.html)
### Summary: 1. **Within India (GTA to GTA)**: GST applicable at 5% or 12%, CGST/SGST if same state, IGST if different states. 2. **To Bangladesh (GTA to GTA, USD payment)**: No GST, qualifies as export. 3. **To Bangladesh (Normal GST registered company, INR payment)**: GST applicable, likely 5% or 12%, IGST applies, potential complications with export status due to INR payment.
Please ensure compliance with the latest GST notifications and consult with a GST professional for detailed advice.
CAclubindia
