1.Who is a GTA ?
Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017
Definition 2 (ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;
Issuance of a consignment note is the necessary for a supplier of service to be considered as a Goods Transport Agency.
2.Whether Bilty or Bilti is a consignment note ?
Bilty or Bilti is another name used for Consignment Note in some parts of India. Definition 29(ze) uses the word “ by whatever name called” hence Bilty also a consignment note.
As per the advance ruling AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND - IN RE : UTTARAKHAND FOREST DEVELOPMENT CORPORATION even e way bill issued by the consignee will be treated as consignment note in case transporter is an unregistered service provider. This advance ruling may be useful transport service receivers to discharge their GST liability properly.
3.What is the procedure to opt Forward Charge Mechanism ( FCM ) or Reverse Charge Mechanism ( RCM ) by GTA and when the application has to be submitted for FCM ?
A GTA should not apply hybrid procedure i,e apply RCM for few service receivers and FCM for others. If GTA opt to charge GST under FCM basis, he needs to intimate on or before 15th March for the following FY. Example For current FY 2023-24 should have applied on or before 15.03.2023
Notification No. 8/2017-Integrated Tax (Rate) dt 28th June, 2017
Sl 9 condition to (iii) ( b ) condition 2 as follows ;
"(2) The option by GTA to itself pay GST on the services supplied by it during a Financial Year shall be exercised by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year: ...."Manual submission of Annexure V is a procedural lapse hence submission through online will be helpful to avoid disputes at later stage.
4.What are the current prevailing tax system for transportation under GST regime ?
Notification No. 8/2017-Integrated Tax (Rate) dt 28th June, 2017
Sl 9 Heading 9965 (Goods transport services) ( iii )
There are three options :
(a) GTA does not exercise the option to itself pay GST on the services supplied by it;
GST payable by service receiver under RCM @ 5%
But GTA service provider Should not take ITC on goods and services used in supplying the service and should mention that “GST to be paid under RCM “ in invoice to pass on the liability on service receiver.
(b) GTA exercises the option to itself pay GST on services supplied by it
GST payable by GTA service provider under FCM @ 5%
But GTA service provider Should not take ITC on goods and services used in supplying the service
(c) GTA exercises the option to itself pay GST on services supplied by it
GST payable by GTA service provider under FCM @ 12%
ITC can be availed by GTA
5.Which are the transport services falls under NIL tax category as on date ?
Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 Heading 9965 or Heading 9967
Sl 21. Services provided by a goods transport agency, by way of transport in a goods carriage of -(a) agricultural produce; (d) milk, salt and food grain including flour, pulses and rice; (e) organic manure; (f) newspaper or magazines registered with the Registrar of Newspapers; (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or(h) defence or military equipments.
Sl 21A . Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person ( other than specified service recipients in this section)
Sl 21B. (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.
Author’s Remarks : GTA has to decide every year March month itself whether he is going to follow FCM or RCM for the following FY and intimate GST Department within the time limit as per Q3 above and strictly SHOULD NOT follow hybrid system of FCM and RCM at a time. No such choice given in GST Laws to adopt hybrid procedure.
