21 October 2021
We are registered Transporters (GTA) in WB. We transport mainly Cement. We carry Cement from the Manufacture Factory to the Manufacture Dealer or else. We make Transport Invoices without GST. The Manufacture (Cement Company) paid GST on our behalf (RCM basis).
But In this Month (October 2021) we make one service to a Party (Say M/s ABC) who’s GSTN no is suspended and we treat it as a URD client. (We do not know what is the treatment in GST if the client have Suspended GSTN no. )
Now Question Is :
1. If a registered GTA services provider provides services to URD both interstate and local then who will be liable to pay tax?
2. What is the Rate of tax?
3. In GSTR 1 which Column we put the figure ( Service provide to URD dealer)
4. In GSTR 3B which Column we put the figure ( Service provide to URD dealer)
10 July 2024
In the scenario you described, where you, as a registered Goods Transport Agency (GTA), provided services to an Unregistered Dealer (URD), here are the clarifications regarding GST implications:
1. **Liability to Pay Tax:** - As per GST regulations, when a GTA provides services to an Unregistered Dealer (URD), the liability to pay GST rests with the GTA under the Reverse Charge Mechanism (RCM). This means you, as the service provider, are required to pay GST on such services. - The URD is not liable to pay GST directly since they are unregistered.
2. **Rate of Tax:** - The applicable rate of GST on GTA services provided to an URD is 5% (2.5% CGST + 2.5% SGST) or 5% IGST if it's an interstate transaction. - This rate is specified under Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended.
3. **Reporting in GSTR-1:** - In GSTR-1, the details of services provided to an URD should be reported in Table 12 (HSN/SAC-wise summary of outward supplies), under the relevant HSN/SAC code for GTA services. - Since the URD is not registered and hence does not have a GSTIN, you would mention "URD" in place of the GSTIN while reporting these transactions.
4. **Reporting in GSTR-3B:** - In GSTR-3B, the details of outward supplies made to URDs under RCM should be reported in Table 3.1(b) (Outward taxable supplies (other than zero rated, nil rated and exempted)). - Separate figures for CGST, SGST, and IGST should be reported based on the nature (intra-state or inter-state) of the transaction.
**Additional Note:** - If the URD's GSTN is suspended, it doesn't change the liability or reporting requirement under GST for the GTA. As long as the transaction is correctly identified as a supply to an URD, the GTA needs to comply with the RCM provisions.
It's recommended to consult with a GST professional or tax advisor for precise compliance and any recent updates in GST regulations that may affect your specific situation.
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