What is the rate of GST for providing GTA service, please give detail information for the same?
GTA exclusively providing services to specified persons— A GTA exclusively provides transport services to the specified persons who are liable to pay tax on reverse charge, is not required to register under GST. This means that even if their turnover crosses the threshold limit, they are not required to register under GST. This is because 100% of their supplies will be reverse charge supplies, on which they will not have any tax liability.
When GTA (registered or unregistered) provide service to specified persons—GST on freight charges at 5% is levied (RCM)
These specified persons are—
1) A factory registered under or governed by the Factories Act, 1948
2) A Society registered under Societies Registration Act, 1860 or under any other law for the time being in force in any part of India
3) A co-operative society established by or under any law
4) A body corporate established by or under any law
5) A partnership firm, whether registered or not under any law, including association of persons
6) A casual taxable person
GTA not exclusively providing services to specified persons— A GTA which is not exclusively providing transport services to the specified persons, who are liable to pay tax on reverse charge, has to register under GST when its aggregate turnover crosses the threshold limit.
When a registered GTA provides transportation service to other than specified persons, the GTA is liable to pay tax on the supply. This is applicable only when the GTA is registered. If the GTA is also unregistered, there will be no tax liability on the GTA or the recipient.
Where a registered GTA is liable to pay tax, 2 options are available to the GTA:—
Pay tax @ 5% with no input tax credit
Pay tax @ 12% with full input tax credit
But, the registered GTA has to make this choice at the beginning of the financial year.
If all the services of the GTA fall under RCM than GTA is not required to mentioned services in GSTR 3B, therefore it can file GSTR-3B as Nil. And in case of filing of GSTR-1 fill details in B2B column by marking RCM YES in 5% rate Column.
Note— Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, shall be exempted as per Notification No. 32/2017- Central Tax (Rate) dated 13.10.2017.
Exempted supply by GTA is also covered in Notification No.12/2017 Central Tax (rate) dated 28.06.2017.