Goods Transport Agency under GST

Goods Transport Agency or GTA is a significant aspect of the transportation industry that involves the transportation of goods from one location to another. Under GST, a Goods Transport Agency is defined as any person who provides services in relation to the transport of goods by road and issues a consignment note, either in his own name or in the name of the owner of the goods. The GST provisions related to GTA have undergone many changes since its introduction. In this article, we will look at some of the frequently asked questions related to Goods Transport Agency under GST.

What is a Consignment Note?

A consignment note is a document that contains details of the goods being transported, the name of the consignor, the consignee, and other relevant details. It is an essential document for both the consignor and the transporter, as it serves as proof of the transaction.

Who is liable to pay GST on GTA services?

The recipient of GTA services is liable to pay GST under the reverse charge mechanism. However, if the GTA service is provided to an unregistered person, the GTA is liable to pay GST.

What is the rate of GST applicable to GTA services?

The rate of GST applicable to GTA services is 5%, without input tax credit.

Is Input Tax Credit (ITC) available on GTA services?

No, Input Tax Credit (ITC) is not available on GTA services.

How to calculate GST on GTA services?

The GST on GTA services can be calculated as follows:

GST = (Freight x 5%)/105

Here, Freight refers to the amount charged by the GTA for the transportation of goods.

What is the time of supply for GTA services?

The time of supply for GTA services is the earliest of the following:

The date of issue of the consignment note
The date on which the goods are handed over to the GTA
The date on which the payment for the GTA services is made

Can an unregistered GTA issue a consignment note?

No, an unregistered GTA cannot issue a consignment note. Only a registered GTA can issue a consignment note.

Is GTA eligible for Composition Scheme?

No, Goods Transport Agency (GTA) is not eligible for Composition Scheme.

Conclusion

Goods Transport Agency (GTA) plays a crucial role in the transportation of goods by road. The GST provisions related to GTA have undergone many changes since its introduction. In this article, we have looked at some of the frequently asked questions related to Goods Transport Agency under GST. Understanding these provisions is essential for businesses involved in the transportation of goods to comply with the GST regulations.