The Goods and Services Tax Network (GSTN) has released a fresh advisory for the goods transport agency taxpayers (GTAs) regarding latest functionalities added to the online GST portal for submission of the declaration of the option available with the goods transport agency to opt for either forward charge mechanism or reverse charge mechanism in respect of the services provided by the GTAs from the next financial year i.e. F.Y. 2024-25.
Goods Transport Agency – Meaning
Under GST, goods transport agency means any person engaged in supplying services in relation to transportation of goods by road and also issues a consignment note, by whatever name called. Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplier of service to be considered as a Goods Transport Agency. If such a consignment note is not issued by the transporter, the service provider will not come within the ambit of goods transport agency. If a consignment note is issued, it indicates that the lien on the goods has been transferred (to the transporter) and the transporter becomes responsible for the goods till its safe delivery to the consignee.
Goods Transport Agency v/s Trucks, other operators
Only those GTAs that assume agency functions and issue consignment notes are brought into the GST net. This implies that individual truck or tempo operators who do not issue consignment notes may not be covered within the definition of GTA. The services provided by such individual transporters who do not issue a consignment note will be covered by the entry at S.no.18 of Notification No. 12/2017-Central Tax (Rate), which is exempt from GST.
GST on Goods Transport Agency – Forward Charge Mechanism or Reverse Charge Mechanism
Goods transport agency under GST has been given the option to pay GST either on forward charge basis. However, in a case where the GTA does not opt for the forward charge mechanism, the liability to pay tax on reverse charge basis (RCM) falls on the recipient of services.
Advisory to Goods Transport Agency issued on 01.01.2024
The GSTN has issued a latest advisory for the goods transport agency regarding the functionalities available on the portal for submission of the declaration of the option available with the goods transport agency to opt for either forward charge mechanism or reverse charge mechanism in respect of the services provided by the GTAs from the next financial year i.e. F.Y. 2024-25. Online filing of these forms is available from 01.01.2024 to 31.03.2024.
Filing of online declaration for existing GTAs
As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023, the goods transport agency can opt for forward charge mechanism by filing Annexure V or can revert to reverse charge mechanism by filing Annexure VI.
Steps for Annexure V Form: Login>> Services>>User Services>>GTA>>Opting Forward Charge payment by GTA (Annexure V).
Steps for Annexure VI Form: Login>>Services>>User Services>>GTA>>Opting to Revert under Reverse Charge Payment by GTA (Annexure VI).
Filing of online declaration for newly registered GTAs
As per the Notification No. 5/2023-Central Tax (Rate), dated 09.05.2023, the option to pay GST on Forward Charge mechanism on the services supplied the Newly registered taxpayers can now be able to file their declaration within the specified due date for the current Financial Year i.e. 2023-2024 and onwards.
The due date for filing declarations is now being configured by the system. The due date is calculated either before the expiry of 45 days from the date of applying for GST registration or 1 month from the date of obtaining registration, whichever is later. The due date information will be displayed on the dashboard of newly registered taxpayers. This ensures that they are aware of the timeframe within which they need to file their declarations. Goods Transport Agency (GTA) taxpayers who are newly registered can file their online declaration on the GST portal for the current Financial Year within the specified due date.
Steps: Login>>Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).
Option to upload manually filled Annexure V by goods transport agency
In cases where the existing or the newly registered goods transport agency taxpayers have already submitted their declaration to the jurisdictional authority manually, taxpayers are required to upload a duly acknowledged legible copy of the Annexure V Form on the portal. The copy should reflect correct particulars as mentioned in the physical Annexure V submitted. It should also include the correct date of acknowledgement from the jurisdictional office where the physical Annexure V was filed.
Steps: Login>>Services>>User Services>>GTA>> Upload Manually Filed Annexure V.
Deemed declaration of goods transport agency for subsequent years
If a GTA exercises the option to pay GST on the services it supplies during a specific Financial Year, the provision states that this option will be deemed to have been exercised for the next and future financial years by default. In essence, the provision simplifies the process by deeming the option exercised for the next and future financial years unless the GTA actively chooses to revert to the reverse charge mechanism by filing a declaration in Annexure VI.
GTAs were required to file a declaration on the portal for the period from 27.07.2023 till 22-08-2023 for the FY 2024-25. This declaration pertains to their choice of paying GST on the forward charge mechanism. Importantly, the statement informs these taxpayers that they need not file a declaration in Annexure V Form for subsequent Financial Years if they wish to continue with their option to pay GST on the forward charge mechanism.