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GTA Service

rajesh (Accounts executive) (554 Points)

26 October 2018

Can registered GTA charge Gst 5% to Register Dealer on invoice?

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4 Replies

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 26 October 2018

yes he can charge 5% but transporter will not get its itc meaning it will be his expense.

also, he cannot do so in the middle of the year, he has to tell at the beginning of the year that whether he will opt for 12% (with itc) or 5% (without itc).

https://cleartax.in/s/goods-transport-agency-under-gst

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rajesh (Accounts executive) (554 Points)
Replied 26 October 2018

if he charge GST then what is meaning of section 9(3) RCM A

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 October 2018

Originally posted by : rajesh
	Can registered GTA charge Gst 5% to Register Dealer on invoice?

No need to Charge GST for GTA in his Invoice if GTA opt 5% category.

Receipient will be pay tax under RCM basis for service received from GTA as per sec 9(3).

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 October 2018

As per Notification 11/2017 CT (R)

GTA is providing services to other than those specified category recipients (mention in Notification) In such scenario GST shall be paid by GTA itself on forward charge mechanism @ 5%. GTA is not allowed to take any ITC.

Means if the Recepient is not liable to do RCM in that case , GTA has to charge GST @ 5% on forward charge