Last updated on February 24th, 2023 at 07:08 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. (Upto 23rd Feb 2023)
The option to file declaration online has been enabled on the GST portal (24th Feb 2023 onwards)
What is the last date to file the declaration by GTA?
The declaration should be filed on or before 15th March before the commencement of the next financial year. For the upcoming FY 2023-24, the due date will be 15th March 2023.
|Due Date for filing Declaration|
|16th August 2022|
15th March 2023
15th March 2024
Note: For the financial year 2022-23, the declaration was to 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?
But in my opinion for the new registration, there would be no restriction for opting in for FCM or RCM, they can submit the declaration in annexure V to the jurisdictional officer and opt for FCM. Because if they put restrictions they will not be able to avail of the input tax credit for the purchase of vehicles which would generally be at the beginning of the business.
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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HOW CAN I FILE THE ANNEXURE
Annexure is to be filed at Jurisdictional Office.
For FY 2022-23: 16th August 2022 was the last date to file Annexure.
For FY 2023-24: 15th March 2023 is the last date of file Annexure.
and so on…
Annexure V is applicable for Logistics company’s
Annexure V is applicable to GTA who intends to pay GST on forward charge basis
Exceptional conceptual clarity and also precise to the point. None of the articles that I had gone through, posted a specimen of the annexure and clarified as to whether the GTA under FCM can charge both 12% and 5% simultaneously. Looks like he can charge both, subject to proportional ITC. This article explains about the specimen and also all the relevant facts and provisions..
My only doubt being, in case of an unregistered GTA, will the registered person i.e.the recipient, be liable to pay GST under RCM (if he is not a TDS deductor and if no item based or value based exemption applies in this case) ?
Thank you so much. Glad you found the article useful.
If a registered person avails the services of unregistered GTA which are not specifically covered by exemption notification then YES registered person will have to pay GST on a reverse charge basis.