Goods transport agency” or GTA refers to any individual who offers services in connection with the transportation of goods by road and issues consignment notes, regardless of the name used. This indicates that while other parties may also lease cars for the transportation of goods, only those that issue consignment notes are regarded as GTAs. A consignment note is thus a need for something to be called a GTA.
GTA Services
In addition to the actual delivery of the products, the service also comprises additional intermediary or supplementary services, such as:
- Loading/unloading
- Unpacking and packing
- Trans-shipment
- temporary storage,
These services are also covered by GTA if they are integrated rather than offered as separate activities.
What happened with the Service Tax?
The Service tax laws were also applied to RCM. Transportation of used home items qualified for a 60% (40% taxable) abatement and transportation of regular goods for a 70% (30% taxable) abatement.
What is a consignment note, exactly?
The Act doesn’t define a consignment note. According to the Explanation to Rule 4B of the Service Tax Rules of 1994, a consignment note is a document issued by a goods transport agency in exchange for the receipt of goods for the purpose of transporting those goods by road in a goods carriage.
A courier agency is what?
The definition of “courier agency” according to section 65B(20) of the Act is “any person engaged in the door-to-door transportation of time-sensitive documents, goods, or articles using the services of a person, either directly or indirectly, to carry or accompany such documents, goods, or articles.” A courier service is not limited to delivering packages by car. It is capable of transporting any types of papers, products, or items across land, water, or the air.
Issuing Consignment Notes required?
Yes, Rule 4B ibid requires any goods transport agency that offers service in connection with the transportation of goods by road in a goods carriage to the recipient of service to issue a C/N to the recipient of service. Default penalties can be up to A courier agency is what? The definition of “courier agency” according to section 65B(20) of the Act is “any person engaged in the door-to-door transportation of time-sensitive documents, goods, or articles using the services of a person, either directly or indirectly, to carry or accompany such documents, goods, or articles.” A courier service is
not limited to delivering packages by car. It is capable of transporting any types of papers, products, or items across land, water, or the air.
Are GTAs required to register
Regarding whether a GTA must register for GST, there was a lot of misunderstanding. A person who exclusively makes deliveries of taxable products or services on which the Reverse Charge Mechanism (RCM) applies is excluded from registering under the GST, according to Notification No. 5/2017-Central Tax dated 19/06/2017.
Therefore, even if the turnover exceeds the threshold, a GTA is exempt from registering for GST if he only transports items when the recipient is responsible for paying the entire tax amount.
Additionally, if your GTA is registered for GST, you can use the GST search tool to verify the validity of the GSTIN.
Which companies are subject to the reverse charge for a GTA for GST?
Businesses (service recipients) listed below are subject to reverse charge and must pay GST:
- Factory authorised by the Factories Act of 1948
- A society that has been authorised by another statute or the Societies Registration Act of 1860
- A cooperative society founded in accordance with any law
- A GST-registered individual
- A corporation created by or in accordance with any law
- A partnership firm, whether or not it is registered (including AOP)
- Unreliable taxable entity
Any GST-compliant invoice from a GTA must include the information below:
- Names of the sender and recipient
- The vehicle’s registration number under which the items are conveyed
- Specifications of the shipped goods Gross weight of the shipment
- Information on the starting point and ending point
- Taxpayer’s GSTIN, whether they are a consignor, consignee, or goods transport agency
- The GTA’s name, address, and GSTIN if applicable
- Number on tax invoice (it must be generated consecutively and each tax invoice will have a unique number for that financial year)
- Publish date
Describe the service Supply’s taxable value
GST applicable rate (Rates of CGST, SGST, IGST, UTGST and cess clearly mentioned) sum of taxes (With breakup of amounts of CGST, SGST, IGST, UTGST and cess)
Whether reverse charge basis GST is payable
Any ITC on any of the inputs is ineligible for a GTA. Therefore, only cash payments of taxes will be accepted in the standard methods of card, netbanking, cash, UPI, and IMPS (only for taxes upto Rs.10,000).
Returns a GTA Must File
A GTA is not required to register if all of its services are covered by RCM. A GTA must file the standard three monthly returns, GSTR-1 (sales), GSTR-2 (purchases with no available ITC), and GSTR-3, if it registers (monthly summary & tax liability).
How to locate the GTA’s place of supply
The site at which the products are turned over to be transported, whether by mail or courier, to (a) a registered person or (b) a person other than a registered person, is the place of supply of services by way of transportation of goods.