GST- Goods and Transport Agencies Services (GTA) By CA Dhaval Doshi


Background of GTA Service :

The levy of Service Tax on Road Transportation Service has always remained a subject matter of uncertainty. Initially, Finance Act, 1997 proposed to tax the services of road transportation which was subsequently withdrawn after nation-wide strike. Thereafter, in the Budget of 2004, it was proposed to levy service tax on services provided by a goods transport agency in relation to transport of goods by road vide Finance Act, 2004 with effect from 10-9- 2004. However, the levy was deferred till further notice again in view of protest by transporters. The Government thereafter constituted a committee to study the matter. Taking into account the recommendations of the Committee, Notification Nos. 32 to 35/2004 – ST all dated 3-12- 2004 were issued, so as to effectively impose tax on the service of transport of goods by road with effect from 1-1-2005 under reverse charge.

As we are aware that Goods and Service Tax Law implemented on 01st July, 2017. the services which provided under existing law, same is also applicable in the GST with new rates having given some relaxation.

Goods and Transport service divided in 2 Parts: 

  1. Transportation of Goods
  2. Transportation of Passengers                                                       
I. TRANSPORATION OF GOODS

a) By Rail and Vessels


By Rail

( 5 % With ITC )

By Vessels

( 5% With ITC )

By Rail Container

( 12% With ITC ))

Exemptions

( By Rail and By Vessels)

Goods Sent by Railway

Goods Sent Through Vessels Within India

And India to Out Side India

Any Transport of goods in Containers by rail by any person other than Indian Railway

a) Medical Relief - Material

   and Equipments

b) Agricultural produce

c) News Papers      

d) Milk , Salt , Foods Grains

e) Defence Equipments

f) Military Equipments

g) Organic manuals

 

For Vessels :

Goods through in inland waterways


b) By Air


By Air

GST 18 % ( With ITC)

Exemptions

a) Sent within India

b) Goods sent India to other Countries ( Means

   Outside India)

a) Service by way of transportation of goods by

an Air craft from a place outside India to India    


c) By Goods Transport Agency ( GTA)


GST 5% ( NO ITC)

Exemptions

a) Services of Goods by Goods transport

   agency in relation to transportation of goods    

   (including used house hold goods for

   personal use )

 

Explanation : "Goods transport agency" means any person who provides services in relation to transport of goods by road or issue consignment note by whatever name called.

a) Agricultural Produce

d) Food grains , Salt , Milk including flour

     pluses and rice

c) Gross amount charged for goods in a Single

     Carriage not exceeding Rs. 1500 /-

d) Gross amount charged for goods in single

     consignee does not exceeding Rs. 750/-

e) Organic Manure

f) Defence or Military equipments

g) News papers   or magazine

h) defence or military equipments

i) relief material meant for victim of natural or

   man- made disaster, calamities, accidents or

   mishap


d) General Exemptions ( Other Than GTA and Courier Agency )

   Transportation of goods or any services given by the Government exempt up to Rs. 5000/-

e) by way of giving on hire :

   If a vehicle is given to Goods Transportation agency ( GTA) for using transport of goods

   agency and then freight received is exempt under GST                                                   

Any Other Cases other than Above then GST @ 18 % With ITC

*** REVERSE CHARGE ***

Reverse Charge Mechanism Apply on GTA Services in cases of following recipient of Services in GST 100 % RCM Apply ( Notification 13/2017 Dated 28.06.2017 )

a

Factory Registered under Factory Act 1948

b

Any Society registered under society Act

c

Co- Operative Societies

d

Partnership firm , BOI , AOP

e

Body Corporate ( Company)

f

Registered person under GST

g

Any Causal taxable person


II. TRANSPORTATION OF PASSENGERS

a) By Rail


By Rail

GST 5 % ( With ITC)

Exemptions

a) Transportation of Passenger

   1st Class Passenger and A/c Passenger Cover here

1. General exemption given to railway for  

   passenger OTHER THEN

   a) 1st Class Passenger

   b)   A/C Passenger

2. Metro , Tramway , Monorail


b) By Air

By Air

GST 5 % ( With ITC )

By Air

GST 12 % ( With ITC )

By Air

GST 18 % ( With ITC )

Exemptions

a) If any transportation of passenger under regional connectivity scheme Airport by Ministry of Civil Aviation.

 

b) Transport of passengers with or without accompanied belonging   by Air Economy Class

a) Transport of passengers with or without accompanied belonging   by Air other than Economy Class

i. e First Class and Business Class cover under here

 

Any Other Cases

There is exemption given to following cities where departure or landing in airport

a) Arunachal Pradesh

b) Meghalaya

c) Mizoram

d) Manipur

e) Tripura

f) Sikkim

g) Nagaland

h) bagodara ( West Bengal)

i) Assam`


c) By Renting Motor Cab

By Motor Cab

GST 5 % ( No ITC )

By Motor Cab

GST 18 % ( With ITC )

Exemptions

Transport of services by motor cab where the cost of fuel is included in the consideration charge from service recipient.

Any other cases

a) Metered Cab

b) Auto Rickshaw

c) E- Rickshaw


d) Other Services

AC Contract Carriage

AC Stage Carriage

GST 5 % ( No ITC )

Radio Taxi

( GPS Connectivity )

GST 5 % ( No ITC )

Any Other Cases

GST 18 %                ( With ITC )

Exemptions

Any Vehicle taken on Contract or rent transportation passenger with AC and With 7 Passenger capacity

Any radio tax have GPS connectivity and taken on rent by any person for transportation.

 

"Radio taxi" Means a taxi including a radio cub , by whatever name called which is two way communication with central control office.  

Any Other Cases

a) Non AC Contact

   Carriage

b) Non AC Stage

   Carriage  

c) Public Transportation

   Services ( Other than

   Tourist )

d) if any car or vehicle

   given on rent to state

   transport agency with

   12 passenger capacity

   are also exempt  

*** Reverse Charge on Passenger - Through E Commerce Operator ***

Any Service Provided by the E - Commerce operator to passenger for transportation from one

place to another place. Here Driver of Taxi Providing services to passenger for transportation.

In this Case E-Commerce operator is Responsible for Reverse charge amount.

 

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