Last updated on May 10th, 2023 at 12:05 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]extended
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 FY 2023-24, the due date is extended from
15th March 2023 to 31st May 2023 vide a CGST Notification no. 05/2023 dated 9th May 2023
|Due Date for filing Declaration|
|16th August 2022|
31st May 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 for filing the declaration applicable for new registrations taken after the due date?
NO. The deadline of 15th March is not applicable for a GTA who commences new business or obtains new registration.
CBIC issued a notification to clarify that a GTA who commences new business or crosses the threshold required for registration should file the declaration on or before
- The expiry of 45 days from the date of applying for GST registration
- Within 1 month from the date of obtaining registration
whichever is later.
Hence, a newly registered GTA will have no restriction in opting for FCM or RCM. They can submit the declaration in Annexure V and opt for FCM and avail of the input tax credit for the purchase of vehicles which would generally be at the beginning of the business.
Relevant Notification – CGST Notification no. 05/2023 dated 9th May 2023
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), an 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 the 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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