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Gta options

Shivani (Learner) (1881 Points)

12 May 2019

Dear Friends

GTA has two options

either he can opt for 5% rate without ITC or 12% rate with ITC

my questions are

1. which GTA opts for this option - registered, unregistered or both

2. how does GTA exercise this option. does he have to declare somewhere that he is chosing this option.

regards

shivani

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15 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 12 May 2019

1. Unregistered GTA ????? , In term of Section 32 of CGST Act URD not required to collect & charge GST. So Offcourse GTA shall be Registered.
2. No need to declare anywhere , has to excercise any of Option 5% or 12% in start of FY & has to carry the same for whole fy

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Padmanathan Kv (2127 Points)
Replied 12 May 2019

Dear Shivani, If you read Notification 13/2017 central tax rate and 5/2017 central tax, if GTA is providing services exclusively to specified category of persons such as factory, co-operative society, company etc then the recipient is liable to pay GST @ 5% and GTA need not take registration if it is engaged in making supplies only to such specified person. i e. if the GTA is making all his supplies only on reverse charge that is supplies to those specified category supplies as discussed above, then GTA is exempted from obtaining registration of GST.

if GTA is making supplies to person other than the specified category, then it needs to get Registered if the threshold limit exceeds 20L. Once registered there are two options of Forward charge 5% without ITC and 12% with ITC as per notification 12/2017 central tax rate as amended by notification 20/2017 central tax rate.

Thirdly if the GTA is providing exclusively supply of exempt service as per notification 12/2017 central tax rate, it need not get registered.

There is no specific format for exercising the option to the best of my knowledge. Hope this helps

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 12 May 2019

Yes... I agreed to Mr Pankaj Rawat's Ji reply...

No more questions about URD GTA...
If GTA get registered under GST then he avail/choose the Tax rate of 12% and can charge. Otherwise it on 5% without ITC.

Shivani (Learner) (1881 Points)
Replied 15 May 2019

Thank you all for your replies.

If a registered GTA who opts for 5% rate supplies service to Specified Category Recipient RCM is applicable.

If a registered GTA who opts 12% rate supplies service to Specified Category Recipient FCM is applicable.

If a registered person supplies services to NON-Specified Category Recipients (unregistered Individual and HUF), it is exempt under GST.

Now my question is suppose a GTA supplies services to both Specified Category Recipients and Non-Specified Category Recipients and his turnover is more than the threshold limit, hence he is required to take registration under GST.

Now he takes registration and suppose he opts for 5% registration.

Now whenever he will supply to Specified Category Recipient RCM will apply.

Whenever he will supply to Non-Specified Cateogry Recipient, it will be exempt.

So basically he will never be paying tax but just filing his GSTR-1 and GSTR-3B giving details of both the above type of services.

Am i right?

Regards

Shivani

Padmanathan Kv (2127 Points)
Replied 15 May 2019

I dont think you have got it right.. pls go through my reply once again plus the relevant notifications or pls contact 8078126033 if it is still confusing

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Shivani (Learner) (1881 Points)
Replied 16 May 2019

Dear Padmanathan

I have gone through all the notifications and your reply.

Please tell where I am wrong

Regards

Padmanathan Kv (2127 Points)
Replied 16 May 2019

Dear shivani, In case of Specified person such as factory, company, co-operative society, partnership etc it will be taxable on RCM basis at 5%. There is no option here.(notification 13/2017) In case of person other than specified person such as registered individual etc. Forward charge will be applicable - here GTA has two options pay 5% without ITC or 12% with ITC (Notification 11/2017 central tax rate) Apart from this you have to see the exemption cases in notification 12/2017 central tax rate

Shivani (Learner) (1881 Points)
Replied 17 May 2019

Dear Padmanathan

Please read Notification 8/2017 Integrated Tax. You will find out that when GTA exercises 12% option, the option of RCM ceases and he has to pay tax on FCM basis on all supplies made by him whether to Specified Category Recipient or Non Specified Category Recipient.

So i repeat my Scenario in question.

Suppose a GTA supplies services to BOTH Specified Category Recipients and Non-Specified Category Recipients and his turnover is more than the threshold limit, hence he is required to take registration under GST.

Now he takes registration and suppose he opts for 5% registration.

Now whenever he will supply to Specified Category Recipient RCM will apply.

Whenever he will supply to Non-Specified Cateogry Recipient, it will be exempt.

So basically he will never be paying tax but just filing his GSTR-1 and GSTR-3B giving details of both the above type of services.

Am i right?

If wrong, please pinpoint where.

Regards

Padmanathan Kv (2127 Points)
Replied 17 May 2019

Non specified person is it exempt? can you pls share the relevant notification?

Shivani (Learner) (1881 Points)
Replied 18 May 2019

Dear Padma

Yes, please read notification 33/2017 Integrated Tax

after you read please pinpoint where I am wrong.

My scenario is as below:

Now he takes registration and suppose he opts for 5% registration.

Now whenever he will supply to Specified Category Recipient RCM will apply.

Whenever he will supply to Non-Specified Cateogry Recipient, it will be exempt.

So basically he will never be paying tax but just filing his GSTR-1 and GSTR-3B giving details of both the above type of services.

Am i right?

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Padmanathan Kv (2127 Points)
Replied 18 May 2019

shavani, in notification 33/2017 intergrated, it is exempt only if provided to UNREGISTERED persons other than specified persons. If the persons are registered like registered Individual or registered HUF, then it will be taxable on forward charge ( option 5% without ITC and 12% with ITC) and you have to incorporate into your returns.

yes you are right but exemption is only for unregistered persons other than specified persons