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Exemptions to gta

Ramesh patel (Business) (190 Points)

16 April 2020

under which cases a person registered as GTA is exempt from paying tax ?,How is tax calculation done for GTA , suppose a GTA provide transportation of good of fare total rs 8lakh in financial year,within state, what will be tax liability for it?

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10 Replies

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 April 2020

No more clarity in Your query...!

GTA - Goods Transport Agency, this is a name. The name is identified as their services.
But,
As per GST GTA giving services of Reverse Charge and Forwarding charges...

So, Ask Your query with correct details...!

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Ramesh patel (Business) (190 Points)
Replied 16 April 2020

Under which cases a GTA is given exemption on paying tax , ?

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 April 2020

Reverse charge supply...

1 Like

Ramesh patel (Business) (190 Points)
Replied 16 April 2020

Which supplies of good transported by a GTA gets exempted from GSt ?, if there's any notification or order in this regard ,pleease do share it sir,
I m in doubt whether single freight of 1500 or supply of agriculture good such as vegetable and fruit are exempt

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 April 2020

Are You know what is rcm...?
Are You know GTA definition and activities...?

For rcm refer gst rules...
For GTA refer GTA definition in service tax...
Try to google...
after refer come to back and ask Your doubts...

Bcoz, Brief reply not possible here with mobile app...

Try to update...

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 16 April 2020

As per Notification5/2017 GTA is not liable to charge GST on FC if he is supplying his services to Recepeint who is liable do RCM on same .

Now in Respect of GTA Services , RCM is not applicable:
1. When GTA opts to pay tax under FC at the rate 12% (Notification 22/2017 CT (R)
2. Supply of Services to URD other then specified person (Notification 33/2017 CT (R) )

3. when provided to Sez or Sez Unit (Notification 18/2017 IGST (r)

4. When provided to Govt or local authority which has taken registration under GST only for the purpose of deducting TDS (Notification 28/2018 CT (r))

5.As per Notification 12/2017 CT (r) :

where consignments are transported in a single carriage and the total freight for the single carriage (multiple consignment notes or multiple consignee in a single carriage) does not exceed Rs. 1500/- in total. In such case there is exemption from GST.

“individual consignment” transported by a GTA for a particular single consignee. In such a situation if the gross amount charged for transport of these goods is Rs. 750/- or less; then that consignment will be exempted from GST. The limit of Rs. 750/- is with reference to each truck load carrier for a particular consignee.

1 Like

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 April 2020

Very well explain Mr Pankaj Rawat Ji...

1 Like

Ramesh patel (Business) (190 Points)
Replied 17 April 2020

Pankaj sir is there any way exempt on supply of goods that are agricultural?

Baskar (CMA) (93 Points)
Replied 17 April 2020

1.To said GTA, the transporter should issue Consignment note, otherwise the service is exempt from gst.

2.If the value of goods on a single carriage does not exceed RS.1500 or value of goods on a carriage of single consignee does not exceed Rs.750, no GST is applicable.

3.From the notification attached above, if transport service received by a company from GTA ( other than Company) , the recipient of transport service has to pay GST under RCM @ 5%

So to qualify RCM under GST,

1.Transporter Should be Other than a Company (like Sole trader, partnership etc.)

2. he should issue Consignment note.

3. Value of Single consignor should exceed Rs.750 or Value of goods on vehicle exceed Rs.1500

4.Transport Service recipient Should be a company

5.There is no GST for transportation of Milk Even though he is GTA

If all the above conditions are met, a company should pay gst @ 5% under RCM.

Pls correct me if anyone have alternative view on the above case....

Baskar (CMA) (93 Points)
Replied 17 April 2020

GTA services specifically exempt
In terms of notification no.12/2017-Central Tax (Rate) dated
28.06.2017 (sr.no.21), the following services provided by a GTA
(Heading 9965 or 9967) is exempt from payment of tax:
Services provided by a goods transport agency, by way of
transport in a goods carriage of:
(a) agricultural produce;

Hope your doubt will clear now...