GST Compliance: Filing Choices for GTA Taxpayers

This article provides an overview of the functionalities available on the Goods and Services Tax Network (GSTN) portal for Goods Transport Agency (GTA) taxpayers under GST.  This blog outlines new GST provisions related to GTA online filing options for both existing and newly registered GTAs regarding the payment of GST on their services.

Meaning of GTA

A GTA is someone who provides transportation services for goods by road. But there’s a catch – they need to issue a document called a consignment note (regardless of its specific name) for each shipment. GST provisions related to GTA. The services of GTA can be GTA to a businesses or GTA to GTA services under GST. GST rate on transportation of Goods by road will be different from transportation by rail or any other mode.

Meaning of Consignment note

While the current Goods and Services Tax (GST) Act and notification number 12/2017-Central Tax (Rate) don’t explicitly mention “consignment note,” understanding its significance comes from the previous Service Tax Rules 1994. These rules defined a consignment note as a document issued by a Goods Transport Agency (GTA) with crucial details like the goods being transported, involved parties, and tax liability.

Though not directly mentioned in the current GST laws, a consignment note serves as strong evidence for someone claiming to be a GTA. Therefore, issuing a consignment note is highly recommended for those seeking recognition as a GTA under GST and its associated tax benefits. However, for specific advice and legal interpretations, it’s always best to consult a qualified tax professional.

Existing GTA Taxpayers

The government has issued a rule giving businesses more options when paying taxes for services provided by transport agents (GTAs) that is GST on GTA. This is like having more choices on a menu to best suit your needs.

• Earlier Businesses had to pay a specific tax for GTA services (called GST) in a certain way also need to file specific GST return.
• But now, businesses have the option to select from forward charge or reverse charge mechanism for their payment methods. 
• They must confirm their tax payment choice by submitting either Annexure V or Annexure VI form between Jan to March 31st, 2024.
• The decision made during this period will impact tax payments for the following financial year, 2024-25. To file the form, businesses can utilize an online government portal for convenience and efficiency.
• Forward Charge: Login to the portal and navigate to “Services” -> “User Services” -> “GTA” -> “Opting Forward Charge Payment by GTA (Annexure V)”.
• Reverse Charge: Login to the portal and navigate to “Services” -> “User Services” -> “GTA” -> “Opting to Revert under Reverse Charge Payment by GTA (Annexure VI)”.

This rule gives businesses more flexibility in managing their tax liabilities associated with existing GTA. By choosing the right option, you can potentially simplify your tax process and potentially save on cost.

Newly Registered GTA Taxpayers

As a newly registered GTA You now have a choice regarding how you pay Goods and Services Tax (GST) on services you provide. The option is available to new GTA are the “Forward Charge” method.

To choose this method:

• Login to the government portal.
• Click “YES” on the pop-up message or navigate to Services > User Services > GTA > Opting Forward Charge Payment by GTA (Annexure V).
• The system will automatically display the due date for filing the declaration, which is usually within the current financial year.
• This choice affects how you pay GST from the current financial year onwards.

Attention, GTA Taxpayers: Upload Your Annexure V Form 

If you’re a Goods and Transport Agent (GTA) who already submitted a paper Annexure V form for the 2023-24 financial year, you can now upload a copy online for record-keeping purposes.

• Uploading the form is optional but recommended.
• If you filed the form on time during the previous year, you don’t need to file it again for the upcoming year or future years.
• Log in to the government portal.
• Go to Services > User Services > GTA > Upload Manually Filed Annexure V.
• Follow the on-screen instructions to upload your form.
• This simple step helps ensure everything is well-documented for the future.

Important points to consider

Once you choose how you want to pay Goods and Services Tax (GST) on your services for a financial year, that choice stays valid for the next year and beyond.

• Unless you decide to switch to a different method by filing a declaration in Annexure VI.
• Filed declarations for FY 2024-25 between July 27th, 2023, and August 22nd, 2023? They’re valid, and you don’t need to file Annexure V again for future years if you want to continue using the “Forward Charge” option.

Takeaway

By grasping the features and timelines provided, GTA taxpayers can effectively handle their GST responsibilities via the GSTN portal. GST provisions related to GTA proactive approach guarantees adherence to regulations and prevents the risk of facing penalties.