Last updated on October 14th, 2022 at 07:13 pm
Declaration to be filed by GTA
Is GTA required to file a declaration in Annexure V with Jurisdictional Authority?
When Goods Transport Agency selects the option of paying tax under the forward charge mechanism, a declaration in Annexure V notified vide a CGST(Rate) Notification no. 03/2022 dated 13th July 2022 should be filed with the Jurisdictional Authority before the commencement of the financial year. [Options for GST rates available to GTA]
Note: Specimen of Declaration in Annexure V is attached below
Declaration needs to be filed online/offline?
Declaration in Annexure V is to be filed physically(offline) with jurisdictional authority.
What is the last date to file the declaration by GTA?
The declaration should be filed on or before 15th March for the upcoming financial year.
Note: For the financial year 2022-23, the declaration can be filed up to 16th August 2022 as the decision to file the declaration was taken in the 47th GST Council Meeting which was held on the last week of June 2022 and notified on 13th July 2022.
Is the deadline of filing the declaration applicable for new registrations taken after the due date?
Clarification in this regard is awaited from Government.
There is no clarity as to how a newly registered GTA (registered after the due date of filing the declaration) can opt to pay tax under the forward charge mechanism for the current financial year and file the declaration as the due date has already lapsed.
For eg. How a GTA will opt for FCM for FY 22-23, if GTA obtains registration after the deadline for filing the declaration in Annexure V i.e.16th August 2022?
For eg. How a GTA will opt for FCM, if GTA obtains registration after the deadline of filing the declaration in Annexure V i.e. 15th March of earlier FY?
What happens if a GTA misses the last date of filing the declaration?
If GTA misses the deadline, there is no specific clarification that how GTA will be able to select the option of paying tax under the forward charge basis. As per the law, if a GTA fails to file the declaration they will not be able to provide services on a forward charge basis.
Alternatively, GTAs can visit the Jurisdictional Authority and check if there is any possibility of accepting the declaration after the due date.
For e.g. A regular taxpayer fails to opt-in or opt-out of the QRMP scheme within the prescribed date then will not be permitted to change for that particular quarter.
For e.g. If a taxpayer fails to opt-in for a composition scheme, will not be permitted to opt in for that financial year.
Can you switch to RCM after filing the declaration?
No, once you opt for the forward charge for a financial year you cannot switch to the reverse charge mechanism. Declaration once filed cannot be withdrawn for that financial year.
Will GTA file the declaration for each financial year separately?
Yes if GTA opts for the forward charge of GST then the declaration needs to be filed for each financial year separately within the prescribed date. It shall be valid for one financial year only.
Is GTA required to disclose the GST rate of the forward charge in the declaration?
Considering the specimen notified, GTA is not required to mention that the services will be provided at a 12% or 5% GST rate on the forward charge basis in the declaration.
Note: As GTA will only be declaring that they would be paying tax on the forward charge basis. This will give GTA an option to switch between the forward charge GST rates i.e. 12% and 5%, but the credit of input tax credit will have to be taken proportionately in that case.
Apart from the above declaration, GTA also has to comply with following
Specimen of Declaration – Annexure V
Form for exercising the option by a Goods Transport Agency (GTA) for payment of GST on the GTA services supplied by him under the forward charge before the commencement of any financial year to be submitted before the jurisdictional GST Authority.
1. I/We______________ (name of Person), authorized representative of M/s……………………. have taken registration/have applied for registration and do hereby undertake to pay GST on the GTA services in relation to transportation of goods supplied by us during the financial year……………under the forward charge in accordance with section 9(1) of the CGST Act, 2017 and to comply with all the provisions of the CGST Act, 2017 as they apply to a person liable for paying the tax in relation to supply of any goods or services or both;
2. I understand that this option once exercised shall not be allowed to be changed within a period of one year from the date of exercising the option and will remain valid till the end of the financial year for which it is exercised.
Signature of Authorised representative:
Name of Authorised Signatory:
Full Address of GTA:
(Dated acknowledgment of jurisdictional GST Authority)
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