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GTA can raise the bill with tax @5%?

Vijay Kumar (1 Points)

27 May 2018

GTA can raise the bill with tax @ 5%?
my view is No payment of tax for GTAs is recipient liability...

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11 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 27 May 2018

Originally posted by : Vijay Kumar
	GTA can raise the bill with tax @ 5%?my view is No payment of tax for GTAs is recipient liability...

Under GTA

Tax Liability to pay Tax is Recipient

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 27 May 2018

No need to charge GST 5% as recepient is liable do RCM on GTA services (As recepient can refuse to pay GST 5% charged by GTA)

Divakar (Student CA Final ) (11857 Points)
Replied 27 May 2018

Yes GTA can charge 5% gst without itc and 12% gst with itc in forward charge.... When GTA is not charging gst then recipient is liable to pay RCM @ 5% on same under section 9(3)

1 Like

Vinod Babu (24196 Points)
Replied 27 May 2018

Well said sir, agree with you.

1 Like

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 May 2018

BUT GTA is not liable to charge GST 5% ,(As per Notification 13/2017) in any case Recepient is liable to do RCM , yes As per Notification 20/2017 if GTA Forward Charge @ 12% (availing ITC ) the Recepient' can avail ITC for the same.

So , if GTA does not charge GST or charge GST 5% in both the condition Recepient is liable for RCM ,

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Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

GTA has given both the option in forward charge either charge 5% gst without itc or 12% gst with itc... Even GTA r not liable to get registration in GST as exemption provided him.... But its optional for GTA....

Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

When GTA has not charged gst om bill then recipient has to pay gst @ 5% under rcm.... When they charge it in forward charge then what is need

Divakar (Student CA Final ) (11857 Points)
Replied 28 May 2018

GTA has 2 options- 12% GST with ITC * OR 5% GST with no 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

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 May 2018

A Goods Transport Agent has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust, 2017hether GTA Services are Taxable Supplies?

Wilson (M) (24 Points)
Replied 27 November 2018

Sir,

Opting of GST ITC with Forward Charge @ 12%

You have stated in a Query / Reply that:

"However, the GTA has to opt at the beginning of financial year."

Where this has been specified whether in Notification/Circular. Request you to share the same as no such wording found in Notification No.20/2017 dated 22-Aug 2017

Thanks

Wilson.A