News

GST rates for Goods Transport Agency

• GTA can now opt to pay GST @ 5% forward charge basis.
• No ITC shall be available when opting for 5% FCM • Prescribed declaration published to be used to switch to 5% FCM by 15th March before the next financial year.
• For FY 2022-23, GTA can switch by 16th August '22.
• Other GTA slabs such as 5% RCM and 12% FCM remain the same
• Providing trucks on hire to GTA is still exempted.

GST rates for providing trucks on rental

• Trucks provided on a rental basis were coming under 18% GST.
• It is now reduced to 12% in those cases where fuel is included in the rental cost.
• This applies to fixed rental not trip-based or GTA service.
• This does not apply to providing trucks to GTA.

GST rates for Goods Transport Agency

• GST on GTA service was exempt on transportation of goods in the following cases:
• Where consideration charged for the transportation of goods on a single consignment transported in a single carriage was below Rs 1500.
• Where consideration charged for transportation of all such goods for a single consignee does not exceed Rs 750.

The above cases are now removed wef 18th July 2022.