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G.T.A. Querry

19 April 2021

my client is a partnership firm & engage in GTA means received freight for goods transport.firm has own trucks.& bill to pvt ltd company.both parties are registered.I want to know :

1.who will pay Tax
2.what is tax rate

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 19 April 2021

It comes under RCM basis.

Tax is to be paid by recipient.

5% with no ITC or 12% with ITC based on conditions

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 19 April 2021

If firm is registered under GST as you said in that case firm have an option either to charge tax @ 5% without ITC or 12% with ITC. Else they also have an option to not charge tax in that case company needs to pay tax under RCM @ 5% and can claim ITC.

However, the GTA has to opt at the beginning of financial year. *As per Notification No. 20/2017-Central Tax (Rate) 22nd August, 2017

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RENU SHARMA (1388 Points)
Replied 19 April 2021

Agree with Sourav ji

vikash sharma (79 Points)
Replied 20 April 2021

Agree with Abhay ji

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 20 April 2021

Depends on what option you have chosen. If rcm then 5% will be paid by your client and you will not be eligible for any itc.
if forward charge then 12% will be paid by you. you will also be eligible for itc.
once opted under forward charge then cannot switch to rcm route.
For further query you can mail me