GST tax rate for GTA (Goods transport agency) and transporters

Rahul Rai
watch_later 11 months ago

What is the tax rate for Goods Transport Agency (GTA)? Whether input credit can be availed by GTA?

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2 Answers

GST Payer watch_later 11 months ago
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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.

Comments:
What about reverse charge on GTA? As of now under service tax there is provision of RCM. - Rahul Rai
Updated the answer check it now. RCM is applicable on GTA. - GST Payer
Section 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 Manu
Is'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

anonymous user watch_later 10 months, 3 weeks ago
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Yes Tax rate on GTA is fixed at 5% without Input Tax credit.

There is no clarity on whether Tax will be on RCM basis or not.

Comments:
Is'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
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