Tax rate of GTA is 5% and input credit is not available.
Services provided by Goods Transport Agency or GTA are divided into 2 categories and both are taxed at 5%.
- Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use] - Taxed at 5% without ITC (Input Tax credit)
- Services of goods transport agency in relation to transportation of used household goods for personal use. - Taxed at 5% without ITC (Input Tax credit)
Further it should be noted that service received from a GTA falls under Reverse Charging and tax is to be paid by service recipient.
chatCommentsWhat about reverse charge on GTA? As of now under service tax there is provision of RCM. - Rahul RaiUpdated the answer check it now. RCM is applicable on GTA. - GST PayerSection 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available- (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely- (A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; - Manoj ManuIs't this rate for the service provider. The notification says, that this rate is applicable, provided the input credit is not utilised for supplying the service. Does't it mean it applies only for the provider. Then for recipient, this rate will not apply....correct me if i am wrong. - Sasidhar@Sasidhar, Yes that makes sense. 12% for input is for service provider. For recipient it hardly matters, it is revenue neutral for government. - GST Payer