Monday, 9 October 2017

GST- Q AND A

Q. Bill final in 15-11-16 but not payment yet what is paymant in GST and thecontract rate is decide (item+vat)
A. If tax was paid before GST in old taxation regime then payment received after GST implementation will not be taxable now.
Q.I m electrical and civil Contractor. I m doing business with state govt. deptt.s only. In vat they are deducting 4% vat from my work bill. Now in GST how much will be deducted from my work bills? Till nor any state deptt. Not paying bill to any contractor. And how will i get GST (IGST, CGST, and SGST)
A. GST @12% if you are registered in GST then you can take input tax credit but input tax credit is not available for construction of immovable property.
Q.I m doing work for electrical substations, Lines and civil work of laying water pipe line for irrigation deptt. Shall I get ITC of CGST, IGST and SGST. But in GST we are treated as Clause 119 of Section 2 for which GST is 18%
A.Input Tax Credit is available. You can take input tax credit of CGST, SGST and IGST paid on inputs.
Q. Kindly clear the GST rate on fabrication work contracts, repairing works and only manpower supply for executing the same jobs.
A.GST @12% for work contract.
Q.I am doing both trading of industrial items and industrial contract works with material on single GST No. Is it ok? I have one more query, if I am doing an industrial fabrication work including both material and labour charges and raise single invoice for it, what is the rate of GST applicable on it.
A. Yes it is okay, no problem. GST @18% Fabrication is included in GST Work contract.
Q. Whether ITC is available for carpentry work (like making of furniture & cup board etc...),
A.Yes ITC is available.
Q.Works contracter ccl & other gov.agency for repairing work me kitne return file karne honge.
A.Work Contractors are required to file return as normal taxpayer 36 + 1.
Q.I have more than one businesses can I use my GSTIN all businesses and issue tax invoices in different name by mentioning my GSTIN.
A.This is not possible. You cannot use your GSTIN with different business name.
Q.I have 2 businesses in my Pan number 1st as S M Enterprises and 2nd as Dwarkadhish Enterprises which is a wholesale business. I have taken GST No in S M Enterprises. Do I have to take separate GST No. for Dwarkadhish Enterprises?
A.Yes you have to take separate registration. You cannot use of GSTIN of one business with other business.
Q. We are tempo modification company...we install televisions seats flooring and other luxuries in force tempo. 
A. Modification is also covered as work contract service. GST @12% is applicable on work contracts. Section 2 sub Section (110) defines work contract.
Q. Material purchases per jo GST paid kiya hai uska input milega kya.
A.Actually the GST rate on work contract is 12% so kindly ignore the rate of 18%. If work contract is other than construction of immovable property then input tax credit is allowed.
Q. Mera trn over 7 lk ka aas pass hai magar sir ham kaise dikhaye ki hamara trn over 20 lk se kam hai ya sarkar kaise manegi ki mera trn over 20 lk se kam hia sir aise to jaydatar log apne trn over 20lk se kam bol denge.
A.Aisa nahi hota or jo aisa karte hai unke hi ghar pr income tax ki रेड padti h... Hota kya hai... Ki aap jb annual final return file krte ho to ca aapse puchta h ki kitna business hua h to aapko kuch bill dene pdte h... Kuch kacche bill, kuch details vese hi batani padti h to ca apne aap calculate kr leta h ki aapka kitna business hua h... Thoda bhut to kr lete h but jyada ni kr pate h.. Isme expenditures or baki calculate krke CA sb kr deta h... To aap Dekh le ki last year kitna टर्नओवर hua h uska hi kuch tax dena padega aur ragistration karana padega.
Q.सर् में 20 लाख से कम का काम करता हु ओर में किसी सरकारी योजना में कोई सामान बेचता हु तो क्या करना होगा
A. Aapko GST No. Lena padega... Government work me GST lena hota h.. Agr private kam hota to aapka bina GST chal jata.
Q.Mai ek readymade garment ke shop kholna chhata hu us ke liye mujhe kin kin chijo ke jarurat hoge.
A.Agar aapko lagta h ki 20 लाख se km ka business 1 Year me hoga or ek hi राज्य में karoge to aapko GST ki koi jarurt ni h.... Lekin pan card jarur bnwale or 1 saal ki final IT return jarur bhare.... Or aap maal to kisi b राज्य se kharid skte h...
Q. Whether it is compulsory to take registration under GST if i am making inter state purchases and my turnover is less than 20 lakhs.
A. No... Inter state purchasing kr skte h... Bina GST no... Lekin sell to ek hi state me hi krna hoga... Aap chahe kisi b state se purchase kare isse koi frk ni padta... Koi GST no. Ki jarurt nahi 20 lakh se km me.... Or agr inter state sell karore to GST jaruri h.
Q. मेरी किराने की दुकान है, एक दिन में 30000 rs तक होता हैं मैक्सिमम अभी में क्या करूँ
A.Aap GST no. Lele... Aapko benifit b milega... Aapki sale achi khasi h... Phle GST no. Le le kyoki aapka business 20 lakh per year se jyada hota hai to GST no lena jaruri h... Bad me aap dekh le kis scheme me jana h aapko.
Q.PAN ya GSTN ke bina wholesaler maal dene se inkar kr rhe h. iska kya kre.
A.Pan to hona chahiye... Iske bina aap annual ki final IT return kese bharte ho... GSTN jaruri ni h.. Par pan to hona chahiye... Isse aap ka TDS agr katta h to vaps b mil jata h
Q. Turnover ki ganana kaise kare.
A. Kuch bus ye dekho ki aapka total business 1 financial year me kitna ho jata h... Yehi turn over hota h. Turnover 20 laakh se kam hai, aur GST Inspector check karne aag gaye, aur GST nahi hai to unko kaise proof karonge ki tumara turnover 20 lakhs se kam hai..
Q. Mera money transfer ka business hai 20lakh ka remittance ek din mein hota hai toh mera turn over kya hoga.
A.Aapko to pakka GST lena hi padega kyo ki aapka टर्नओवर to kafi jyada h but aap service tax me aate h... Dekh lo 20*12=240 लाख रुपये hoga.
Q. Mera CA toh bolta hai ki money transfer ka matlab hai customer ka paisa hai. Mera kidhar hai hai. Hum log toh customer ka hi paisa usske khaate mein account mein daal rahe hai na. fir mera turn over kitna huya . Aap galat jankari maat do.  Mera CA bolta hai ki aap ka turn over zero hai kunki vo jo paisa aap ka nahi hai customer se le ke customer ke khate mein daal rahe ho.
A. Commission calculate karo.
Q. Mai maal dosre state se mangwata hon aur year TO 20 lack tak h to compny wale bagair GST No K maal kaise denge.
A. Aap maal to le skte h... Kisi b state se isme GST ka koi jaruri ni... But 20lakh se km ho... Kyoki aap to tax denge to isme kya problem... क्योंकि government ko sirf tax chahiye wo jo aap de chuke ho to ab chahe use becho 20lakh tak me aapse koi kuch ni puch skta h.... Ha lekin aap yearly पर्सनल रिटर्न भरते raho.
Q. Cable TV payment GST bill dena Padega.
A. Agr aapne GST no. Le rha h to bill de or agr 20 lakh se km business 1year h or GST no ni h to... Aap vese hi kacche bill de skte apni दुकान के नाम पर. अन्य विशेष परिस्थितियां - जिसके अनुसार आपको GST लेना ही पड़ेगा ! वह व्यक्ति जिसे धारा 37 में GST Deduct करना हैं Casual taxable persons non-resident taxable persons every electronic commerce operator an aggregator who supplies services under his brand name or his trade name
Q.मेरा स्वीट सुपारी का बिजनेस है मैं अब दूसरे राज्य से माल मंगाता हूं और मैंने जीएसटी नंबर भी ले लिया है लेकिन मेरा सालाना टर्नओवर 2000000 रुपए से कम है तो मुझे 3 महीने और साल भर में कौन-कौन से Returns भरने होंगे प्लीज मुझे डिटेल में समझाएं
A.Ager aapne GST me registered hai to monthly aapko 3 return file karni hogi.
Q.Mera dukandar mujhse pakka bill mang raha h magar mera tarnowar 20 laak se kam h to me kya karu kya koi aur rajistration hai.
A. Bolo ki mai small business owner hun ... usko bhi phayada hai use GST nahi dena padega.
Q. Agar tax free goods h to dusere state me sale karne ke liye GST lena padega
A.नही
Q.What is the rate of tax for residual entry in GST for transactions classified as services ?
A.18 percentage
Q. If transport located in Mumbai and I located in Delhi then what tax we would deduct under reverse charge mechanism means IGST or CGST and SGST?
A.I think it's IGST. IGST will apply, Please refer place of supply rules. Tax will be apply according to the place of supply and only responsibility to pay tax is shifted in reverse charge.  In case of two branch in one state and having one GSTIN number, Invoice and delivery challan book for for both branches will be separate or same.
Q. We Tour Operator Service Provider. How we could charges GST on Air Package, Rail Package, Taxi/Cab Package & Hotel Booking.
A.You will pay GST on the services that you have provided to the customer. If you include commission in the invoice,  if you doesn't include commission in invoice, then it will come under reverse charge. Hotels, Aircraft Carrier will pay on your behalf.
Q.I want to know one retailers do interstate purchases but made all the sale within its state. Whether he need Registration, as his turnover is below 20 lakhs.
A. No GST registration is required.
Q. If Capital goods (such as Laptops) transferred from one office in a state to another office in a different state will also trigger taxable event.

A.Yes it will attract tax.
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GST- QUE AND ANS

Q.  I want to understand that 50 different people come and buy in cash from us and they do not want to give their details. 
A. Small taxpayers, like small retailers, doing a large number of small transactions for upto a value of Rs. 200 per transaction to unregistered customers need not issue invoice for every such transaction. They can issue one consolidated invoice at the end of each day for all transactions done during the day. However, they should issue the invoice where the customer so demands please clarity that 50 different people are un-registered? if yes you need not to mentioned details, you can generate cash bill and collect tax as per law, place of delivery will be your shop.
Q.PLS TELL ME THE GOODS RATE WHICH ARE NOT IN ANY SCHEDULE ARE THEY COME UNDER RESIDUARY ENTRY LIKE VAT TAX ? AND WHAT IS GST RATE ON SUCH GOODS? / FOR RESIDUARY SERVICES IT IS 18 %, BUT FOR GOODS NO SUCH CLARIFICATION
A.There is no such RESIDUARY rate in case of goods.
Q.Then what rate will applicable on such goods
A.GST council has specified GST rates on 1211 items. I think all the items are covered. Petroleum and Liquor are not covered as they are being taxed at old rates. Do you know any item which is not covered in GST?
Q. finding GST rate on handicraft archway ie toran n decoration items n mala of artificial moti
A.Chapter 97 Works of art, collectors' piece and antiques are taxable @ 12% in GST
Q.I HAVE ONE QUERY, I AM REGISTERED DEALER PURCHASED FROM ANOTHER DEALER OUTSIDE STATE, THIS DEALER ISSUED INVOICE EXAMPLE.28.05.17 AND I HAVE RECEIVED MATERIAL 03.06.17, BUT I HAVE ENTER MY BOOK ACCOUNT MATERIALS RECD.03.06.17. BUT AT THE TIME GSTR SHOWING MISMATCH MEANS MY SUPPLIER DATE IS 28.05.17, I ENTER MY BOOK OF ACCOUNT MTLS RECD.03.06.17. I HAVE CONFUSED.
A. It will show mismatch when you will claim credit but as you said you have received material on 03-06-17 so you will not claim credit in May month so there will be no mismatch in may. it will show pending action in you login in may and in june you will claim credit against the same. Mismatch will only be shown when you will claim a different amount from supplier.
Q. ONE QUERY FOR GST, INVOICE BILL WILL BE APPLY FOR GST PORTAL EVERY MONTH, IF YES, SUPPOSE I APPLIED FOR INVOICE BILL FOR THE MONTH OF JULY 17 (I.E. INV.NO.001 TO 100), BUT THIS I HAVE ISSUED 50 INVOICES, REMAINING INVOICE LYING WITH ME 51 TO 100, BUT NEXT MONTH AGAIN I APPLY FOR INVOICE 51 OR CONTINUE USE THIS OR APPLY FOR AGAIN 001. PL.GIVE ME THIS QUERY ANSWER, I HAVE CONFUSED.
A.Invoice continuous series should be followed in a year. No repetition of series in same year otherwise it can create issue to receiver and can show duplicate claim.
Q. I have some closing stock and I am also purchase stock between 1 April to 30 June, 2017. After GST (1 July) if change or any document required to use old stock in GST. 
A. You have to file GST TRAN-01 return to claim the credit of excise duty involved in stock within 90 days from the date of appointment.
Q. GST me current account me cash deposit kitna kar sakte hai because hum agriculture traders Hai or hamari item par gst nahi Hai but hamari sale cash hoti Hai daily make bill 50000 under total sales 30 to 40 lac sale in cash but purchase hum cheque se karte Hai but cash deposit ke vajah se hamare account seas kar dete Hai please suggest because hamara current account me cash different location in all India cash deposit because hum party ko nahi jante party apni location se cash hamare account me deposit karati Hai or hum Delhi se use maal goods de dete Hai.
A.आपको पार्टी को कहना होगा इन्टरनेट बैंकिंग से या चेक से पैसा जमा करवाएं |
Q. Hum retailer hai 20lakh + turnover hai so agar nai krwaye gst registration to disadvantage kya hoga iska
A.ITC refund nahi milega, b2b transaction करने में दिक्कत आ सकती है।
Q.If a person (Aggregate turnover below Rs.75 Lac ) is doing all the activity on a singal GSTIN ( Trading, mfg and Restaurent), then what will be the position of compounding scheme. Can he avail the benefit of this scheme if yes what will be the tax rate ( 1%, 2% and 5%), one another query if I have stock of Rs. 30 lac and no ITC in balance as on 30 June. Should I deposit the tax on this stock because I hv utilized all the itc of this stock, before opting the composition scheme.
A. Take Composition Scheme for separate business. You need to declare all stock but in specified form but no inter state purchases.
Q.Composition dealar inter state purchase ker sakta hai?
A. yes
Q. There is some news that readymade garments traders/manufacturer will not able to get the credit of ITC paid on raw material or GST paid to previous trader.
A. Credit nahi milega wo section 17(5) ya jahan reverse charge hai waha services ke case me list me likha hai...uske alawa credit milega.
Q. My turnover below 1.5 cr. can I use full HSN code?
A. Restriction minimum digits ki hai max aap mention kar hi skate ho.
Q."Place of supply" kya return main bhi mention kerna hoga with state code?
A.Yes.
Q. Bill of supply ke sath SGST, CGST kab ho sakta he.
A.Kabhi b nahi...bill of supply sirf composition and exempted walo ko allowed hai wahan tax nahi hoga.
Q.My one question is we dealing in renewable energy ie solar street light solar panel solar puc power plant but we are facing problem how define GST rate on solar street light bcz solar streetlight have many parts eg battery panel pole battery structure panel structure wire luminary etc but one thing these all are different tax in GST and we sale of these items on 5% tax rate.
A. HSN code ke rules according agar exact match nahi hai to you can go with most resembling match...yani jo sabse kareeb se explain karta ho product ko....
Q. Some dealer purchase tax free goods like cloth, saree from interstate, and on 30 June 2017, he have in stock, but now cloth in taxable in GST act so is he eligible for composition.
A.No because if you have inter state purchase stock you will not be eligible for composition.
Q. It was tax free goods no tax liability was on dealer in vat act. For composition opting option it's mandatory Input vat credit was not claimed. In this case no tax liability on assessee and not claimed, but only he have interstate stock. As per GST law prohibited for composition opting option in interstate stock.  We can avail composition scheme in case of inter-state purchase.
A. There is only restriction on interstate sale as per my point of view.
Q. I have medical wholesale work n turnover is 20-30 lakh. We purchase interstate and sale within state. So is there is any problem to opt composition scheme. Or it is not beneficial for wholesalers?? 
A. It will be beneficial but it depends on case to case basis...all your sales should be to consumer, No inter state sale...plus you are not doing any services work....No credit of ITC will be available..
Q. Invoice bill me hsn code 2 digit ka ya pura bhare toh koe farak padega kya?
A. 2 digits minimum hai aap full bhi likh sakte ho.
Q.Hsn code jaise meri turnover less than 5cr hai toh 2 digit ayega. Toh agar invoice banwate hai hum manufacture hai toh hum apne bill me hsn pura daal rahe hai kyunke hume samajh ni ara hai..
A. Digits minimum hain...max aap daal sakte hai bas dho to kam se kam dalni hi hongi
Q. Explain is that necessary that when we paid the reverse charge mechanism how to difined the HSN code for small expenses and that's are variable goods.
A.1.5 crore se neche ho to HSN code nahi daalna....aap kuchh products k naam batao?
Q. Mera job work he hand block print ka to mujhe kya karna he.
A.Agar 20 lac se jyada hai ya agar aap inter state supply karte hain to aapko registration lena hoga.
Q.I am giving service withing the state or inter-state then in both case how much we have to charge taxes?
A. Services ki ek rate list hai....uske alawa sab pe 18% hai...intra state hai to aap 9-9% lagaoge. Interstate hai to 18% IGST lagega.
Q.I am a small manufacturer. How do we get the input GST credit of small bills like stationery, machine spares, small hotel bills ect.
A.Aapko khud hi invoice banana hai unka n GSTR 2 me fill karna hoga....credit mil jayega
Q.I have a question if the a manufacture registered under composition scheme can he do job work?
A.Job work is a service and composition scheme is not available for service provider.
Q. Explain that whether job worker after doing job work will be able to return back material by delivery challan or invoice same time compulsory.
A.You can return the material on challan by mentioning the reference no. delivery challan issued by principal and invoice can be issued later within 30 days.
Q. I m job worker can i get registered under composition scheme under GST.
A. No.
Q. If I sell goods and and take rikshawala's delivery charges, packing charges, labour charges etc. from customer do I need to take GST from customer. For example Goods value 1,00,000/Packing and delivery 500/ Now should I charge GST on 100000/- or 100500/-What is the rate of tax for such charges?
A. Yes if you are shown in your bills & GST on 100500.
Q.MRP of readymade garment including GST is Rs1040 how much GST will be charged 12 or 5? 
A. GT on sale price and not on MRP.
Q. I want to know that how the department will come to know that my turnover exceeds Rs 20 lac(in case of intra-state supplier)
A. Your books of a/c will tell.
Q.Is any provision related to govt civil works contractor can sub let contract to urd dealer limit to give sub contractor URD any GST, TDS on sub contract.
A. TDS applicable on sub contract & GST also applicable.
Q. At one place you said one will not get ITC if purchases goods for construction. Plz explain how GST will affect builders. Will they get ITC on raw material..? How customers will know whether Builder they are dealing with has taken ITC benefit or not?
A. On construction exp. if GST will paid not by builders in that case.
Q.My purchases in 18% IGST and my most sales is in 12% IGST, so in this case, will I get refund of excess amount of balance IGST or I have to consider as my exp and add up to cost.

A. You have option either to adjust against output tax & the same can be c/f or can take refund for the same.
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Sunday, 8 October 2017

Goods Transport Agency in GST

Background of levying tax on the services of Goods Transport Agency

The levy of Service Tax on Road Transportation Service has always been a contentious issue. The Finance Act, 1997 had levied Service Tax on Goods Transport Operators w.e.f. 16-11-1997 which was subsequently withdrawn after nation-wide strike. Thereafter by the Finance (No. 2) Act, 2004 Service Tax was imposed on Transport of Goods by Road service rendered by a goods transport agency with effect from 10-09-2004. However, the levy was deferred until further notice again in view of transporters’ strike. The Government thereafter constituted a Committee to deal with the issue and after taking into account the recommendations of the Committee, Notification Nos. 32 to 35/2004 – ST all dated 03-12-2004 were issued, levying tax on Transport of Goods by Road with effect from 01-01-2005.
The legal position prevailing under Service Tax is being continued under the GST regime. The services of transportation of goods by road (except services of GTA) continue to be exempt even under the GST regime. In so far as the services of GTA is concerned, if the services (of Goods Transportation) are provided (by the GTA) to specified classes of persons, the tax liability falls on such recipients under the reverse charge mechanism. The following discussion will clarifythe position.

Transportation of Goods by Road

In terms of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.18), the following services are exempt from GST
Services by way of transportation of goods (Heading 9965):
 (a)           by road except the services of:
(i) a goods transportation agency;
(ii)     a courier agency;
 (b)           by inland waterways.
 Thus, it is to be seen that mere transportation of goods by road, unless it is a service rendered by a goods transportation agency, is exempt from GST.

Who is a GTA – Goods Transport Agency?

As per Section 65B (26) of the Finance Act, 1994; “Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called”. Therefore, in the Service Tax regime, issuance of Consignment Note (C/N) was integral and mandatory requirement before any road transporter could be brought within the ambit of GTA.

Position under GST

Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no.12/2017-Central Tax (Rate) dated 28.06.2017.
 (ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;

Thus, it can be seen that issuance of a consignment note is the sine-qua-non for a supplierof 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.  It is only the services of such GTA, who assumes agency functions, that is being brought into the GST net. Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. As a corollary, 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.

What is a consignment note

Consignment Note is neither defined in the Act nor in the notification no.12/2017-Central Tax (Rate). Guidance can be taken from the meaning ascribed to the term under the Explanation to Rule 4B of Service Tax Rules, 1994. In terms of the said rule, consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.

Charge of GST on services provided by GTA

In terms of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by notification no. 20/2017- Central tax (Rate) dated 22.08.2017 , sr.no. 9 and sr. no. 11, (i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) (Heading 9965 &9967 respectively) attracts GST @2.5% or 6% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 5% or 12%. However, the rate of 5% is subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken. The Explanation to the notification further clarifies that it shall mean that,- (a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and (b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made there under.
GST @ 6% CGST (12% cumulative) is subject to the condition that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax 6% on all the services of GTA supplied by it. Further, there is no restriction on the GTA from taking ITC if this option is availed.

Thus, where the GTA is not eligible to take ITC for the supplies effected by it and the liability under GST is discharged under reverse charge basis, the recipient of GTA service discharging the tax liability is entitled to take Input Tax Credit (ITC) of the amount of tax paid under reverse charge, provided it is used in the course or furtherance of business at his end. Further the recipient would be eligible for ITC of the GST paid by GTA on forward charge basis. Notification no. 11/2017-Central Tax (Rate), sr.no.11, (ii) also provides that supporting services in transport other than those mentioned in (i) (Heading 9967) would attractGST @9% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 18%. Similar rate has been prescribed for services falling under heading 9965 in terms of notification no. 11/2017-Central Tax (Rate), sr.no. 9 (v).

Person Liable to Pay GST on GTA services

The liability to pay GST devolves on the recipientsfor supply of services by a goods transport agency (GTA)who has not paid central tax at the rate of 6%, in respect of transportation of goods by road(in terms of notification no. 13/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.1) as amended by notification no. 22/2017-Central Tax (Rate) dated 22.08.2017, if the recipients (located in the taxable territory)belong to the following category:
(a)  Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
   (b)           any society registered under the Societies Registration Act, 1860 (21              of  1860) or under any other law for the time being in force        
      in any part of India; or
  (c)           any co-operative society established by or under any law; or
  (d)           any person registered under the Central Goods and Services Tax Act               or the Integrated Goods and Services Tax Act or the State  
     Goods and Services Tax Act or theUnion Territory Goods and Services          Tax Act; or
(e)           any body corporate established, by or under any law; or
(f)        any partnership firm whether registered or not under any law including association of persons; or
(g)           any casual taxable person.
Thus in cases where services of GTA are availed by the above categories of persons in the taxable territory the GTA supplier has the option to pay tax (and avail ITC) @12% (6% CGST + 6% SGST);and if the GTA does not avail this option, the liability to pay GST will fall on the recipients. In all other cases where the recipients do not fall in the categories mentioned above, the liability will be on the supplierof GTA services.

GTA services specifically exempt

In terms of notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.21), the following services provided by a GTA (Heading 9965 or 9967) is exempt from payment of tax:
Services provided by a goods transport agency, by way of transport in a goods carriage of:
(a)           agricultural produce;
(b)           goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not
          exceed one thousand five hundred rupees;
(c)           goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven                       
     hundred and fifty;
(d)           milk, salt and food grain including flour, pulses and rice;
(e)           organic manure;
(f)       newspaper or magazines registered with the Registrar of Newspapers;
(g)           relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
(h)           defence or military equipments.
 Similarly, the following services received by the GTA (Heading 9966 or 9973) is also exempt in terms of notification no.12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.22) Services by way of giving on hire :
 (b)           to a goods transport agency, a means of transportation of goods.
Thus, if the GTA hires a means of transportation of goods, no GST is payable on such transactions.

Significance of the term ‘in relation to’ in the definition of GTA

The use of the phrase ‘in relation to’ has extended the scope of the definition of GTA. It includes not only the actual transportation of goods, but any intermediate/ancillary service provided in relation to such transportation, like loading/unloading, packing/ unpacking, trans-shipment, temporary warehousing, etc. If these services are not provided as independent activities but are the means for successful provision of GTA Service, then they are also covered under GTA.

Conclusion

The above discussion shows that not all transport of goods by road is by a GTA. To qualify as services of GTA, the GTA should be necessarilyissuing a consignment note. Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt. Moreover, in cases where the service of GTA is availed by the specified categories of persons in the taxable territory, the recipients who avail such services are the ones liable to pay GST and not the supplier of services unless the GTA opts for collecting and paying taxes @ 12% (6% CGST + 6% SGST). In all other cases where GTA service is availed by persons other than those specified, the GTA service supplieris the person liable to pay GST. The GTA service supplieris not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST). In case the GTA service supplierhires any means of transport to provide his output service, no GST is payable on such inputs.
In a nutshell, the GST law continues the provisions prevailing under the Service Tax regime. The law recognises that pure transportation of goods services are mostly provided by persons in the unorganised sector and hence has specifically excluded such operators from the tax net. In respect of those who provide agency services in transport, the liability is cast on the recipients in most of the cases or unless option to pay under forward charge has been exercised by the GTA.  
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