{"id":4681,"date":"2022-07-22T08:10:11","date_gmt":"2022-07-22T08:10:11","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4681"},"modified":"2023-03-21T17:15:30","modified_gmt":"2023-03-21T17:15:30","slug":"gta-opt-either-for-5-without-itc-or-12-with-itc-gstn","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/gta-opt-either-for-5-without-itc-or-12-with-itc-gstn\/","title":{"rendered":"GTA opt either for 5% (without ITC) or 12% (with ITC): GSTN"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4686\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GTA-opt-either-for-5-without-ITC-or-12-with-ITC.png\" alt=\"GTA opt either for 5% (without ITC) or 12% (with ITC)\" width=\"938\" height=\"493\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GTA-opt-either-for-5-without-ITC-or-12-with-ITC.png 310w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GTA-opt-either-for-5-without-ITC-or-12-with-ITC-300x158.png 300w\" sizes=\"(max-width: 938px) 100vw, 938px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e00d768a581\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e00d768a581\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gta-opt-either-for-5-without-itc-or-12-with-itc-gstn\/#Option_provided_to_GTA_to_opt_either_for_5_without_ITC_or_12_with_ITC_under_Forward_charge\" title=\"Option provided to GTA to opt either for 5% (without ITC) or 12% (with ITC) under Forward charge\">Option provided to GTA to opt either for 5% (without ITC) or 12% (with ITC) under Forward charge<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gta-opt-either-for-5-without-itc-or-12-with-itc-gstn\/#The_Central_Board_of_Excise_and_Customs_Notification_on_Goods_Transport_Agency\" title=\"The Central Board of Excise and Customs Notification on Goods Transport Agency:\u00a0\">The Central Board of Excise and Customs Notification on Goods Transport Agency:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gta-opt-either-for-5-without-itc-or-12-with-itc-gstn\/#New_Declaration_by_GTA_required_to_be_submitted\" title=\"New Declaration by GTA required to be submitted :\">New Declaration by GTA required to be submitted :<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Option_provided_to_GTA_to_opt_either_for_5_without_ITC_or_12_with_ITC_under_Forward_charge\"><\/span><span style=\"color: #000080;\"><strong>Option provided to GTA to opt either for 5% (without ITC) or 12% (with ITC) under Forward charge<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Previously, the Central Board of Excise and Customs vide\u00a0Notification No. 13\/2017- dated June 28, 2017\u00a0(\u201cServices Reverse Charge Mechanism Notification\u201d), to notify the kind of categories of services on which tax will be payable under the Reverse Charge Mechanism.<\/li>\n<li>The Union Finance &amp; Corporate Affairs Minister, Smt. Nirmala Sitharaman, presided over the 47th meeting of the GST Council, which was held in Chandigarh on June 28\u201329, 2022. After GST Council meeting recommendations were made to give the Goods Transport Agency the option to pay GST at a rate of 5 percent on RCM or 12 percent under a forward charge option that would be used at the beginning of the financial Year.<\/li>\n<li>The Reverse charge mechanism option was left intact. Additionally, to withdraw the exemption on services of renting of House property for residential purpose to business entities; and to bring all the taxable service of GST Dept of Posts under forward charge mechanism.<\/li>\n<\/ul>\n<p>As per the changes the GST Council recommendation has been notified vide below notification:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Central_Board_of_Excise_and_Customs_Notification_on_Goods_Transport_Agency\"><\/span><span style=\"color: #000080;\"><strong>The Central Board of Excise and Customs Notification on Goods Transport Agency:\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4684\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/GTA-.jpg\" alt=\"GTA\" width=\"840\" height=\"424\" \/><\/h2>\n<p>The Central Board of Excise and Customs vide\u00a0<strong><em>Notification No. 05\/2022- dated July 13, 2022<\/em><\/strong>\u00a0has issued amendments in Services RCM Notification, w.e.f. July 18, 2022, in a below:<\/p>\n<ul>\n<li>CBEC deleted words\u00a0<em>\u201cwho has not paid central tax at the rate of 6%,\u201d<\/em>\u00a0in Serial No 1 of the Services <strong>Reverse Charge mechanism <\/strong>\u00a0Notification so as to provide an option to GTA to pay GST @12% under Forward charge or @ 5% (without ITC)<\/li>\n<li>The Central Board of Excise and Customs deleted words\u00a0add new GST proviso in Serial No 1 of the Services <strong>Reverse Charge mechanism <\/strong>\u00a0Notification, has been inserted to provide that No 1 of the Services <strong>Reverse Charge mechanism <\/strong>notification (i.e., for GTA) will not apply where the supplier has taken GST registration &amp; has exercised the option to pay tax under forward charge mechanism &amp; the supplier has issued a GST Tax invoice to the recipient charging applicable GST Tax &amp; has made a declaration on such invoice issued.<\/li>\n<li>CBEC deleted words\u00a0<em>\u201cby way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Govt, State Govt or local authority or Union territory\u201d<\/em>\u00a0in Serial No 5 of the Services <strong>Reverse Charge mechanism<\/strong> notification, so as to bring such services under the forward charge mechanism.<\/li>\n<li>The Central Board of Excise and Customs provide the new Serial No 5AA has been added in the Services <strong>Reverse Charge mechanism <\/strong>Notification r.t. service by way of renting of house property to a registered person.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4685\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/07\/Goods-Transport-Agency-GST-application.png\" alt=\"GST application on GTA \" width=\"845\" height=\"473\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Declaration_by_GTA_required_to_be_submitted\"><\/span><span style=\"color: #000080;\">New Declaration by GTA required to be submitted :<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>CBEC also add new Annexure III in the Services <strong>Reverse Charge mechanism <\/strong>Notification w.r.t. declaration by the GTA, opting to pay tax on services in relation to transport of goods under forward charge mechanism for an whole FY.<\/li>\n<li>New Declaration by GTA required to be submitted as of July 5, 2022, per Notification No. 14\/2022, As mentioned in the Notification Sl No. 4:<\/li>\n<li>on an invoice issued by a GST registered person whose aggregate turnover exceeds INR 20 Cr but who is exempt from submitting an online invoice, example of Declaration are mention below :<\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\"><strong>We hereby declare that though our aggregate turnover in any preceding financial year from 2017-2018 onwards is more than the Total turnover notified under rule 48(4), we are not required to prepare an invoice in terms of the provisions of the said sub-rule.<\/strong><\/p>\n<ul>\n<li>Considering the Declaration above, GTAs whose Turnover in any preceding FY from 2017\u201318 onwards exceeds Rs 20 cr and Declaration is particularly not coming purview of the issue &amp; generation of e-invoice required to mention the above declaration in his Tax Invoice.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong><u>IFCCL Comments:<\/u><\/strong><\/span><\/p>\n<ul>\n<li>Existing Goods Transport Agency who opt to pay GST @ 12% do not have the option to pay GST @ 5%. They have to pay GST at the rate of 12% on all their consignments under forward charge. GTA w.e.f. July 18, 2022 will be allowed to pay GST either at 5% (without ITC) or 12% (with ITC) on their consignments under forward charge.<\/li>\n<li>Moreover, Reverse Charge mechanism can be opted only if Goods Transport Agency has not opted to pay under forward charge and the option to continue under RCM @ 5% rate will also continue. Goods Transport Agencies will be able to switch from one option to the other at the beginning of the FY.<\/li>\n<li>As per above the conclusion that GST changes have been made in\u00a0Notification No.11\/2017- dated June 28, 2017\u00a0(\u201cServices Rate Notification\u201d) vide\u00a0Notification No. 03\/2022- dated July 13, 2022.<\/li>\n<li>Samer kind of Notifications have been made under IGST, 2017 and UTGST Act and implemented as Option provided to GTA to opt either for 12% (with ITC) under Forward charge or 5% (without ITC) via RCM.<\/li>\n<\/ul>\n<p><b>Conclusion : GSTN allow Amendment under 47th GST Council Meeting\u00a0 for <strong>Goods Transport Agency\u00a0 to <\/strong>opt either for 5% (without ITC) or 12% (with ITC) under Forward charge.\u00a0<\/b><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5458\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B....jpg\" alt=\"GST 3B.\" width=\"1280\" height=\"1217\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B....jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B...-300x285.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B...-1024x974.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B...-768x730.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/01\/GST-3B...-800x761.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Option provided to GTA to opt either for 5% (without ITC) or 12% (with ITC) under Forward charge Previously, the Central Board of Excise and Customs vide\u00a0Notification No. 13\/2017- dated June 28, 2017\u00a0(\u201cServices Reverse Charge Mechanism Notification\u201d), to notify the kind of categories of services on which tax will be payable under the Reverse Charge &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[144],"tags":[923],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4681"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4681"}],"version-history":[{"count":2,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4681\/revisions"}],"predecessor-version":[{"id":5462,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4681\/revisions\/5462"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}