In 47th GST council meeting under the Other miscellaneous changes one of change recommended was Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at the beginning of Financial Year. RCM option to continue.
If a GTA selects the option to pay GST on a forward charge basis, then a declaration as specified in Annexure V needs to be filed with the Jurisdictional Officer before the commencement of the financial year.
Declaration for Opting Forward Charge Payment by GTA in Annexure V for FY 2023-24 is to be filed by GTA up to 15th March 2023. 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 Declaration once filed cannot be withdrawn for that financial year. (In Notification No. 03/2022- Central Tax (Rate) dated 13th July,2022)
The Goods and Services Tax Network (“GSTN”) has enabled the option to file a declaration in Annexure-V to opt for payment under the Forward Charge Mechanism (“FCM”) by the Goods Transport Agency (“GTA”) on the GST Portal.
The functionality can be accessed at: Dashboard > Services > User Services > Opting Forward Charge payment by GTA (Annexure V) > Select FY & apply.
If you are providing a Goods Transport Agencies (GTA) Services and wish to opt for payment of tax on forward charge mechanism, please click on ‘Proceed’ button or click on ‘Go to Dashboard’ button to redirect to the dashboard page.
If GTA chooses to opt forward charge, the declaration must be filed separately for each financial year by the due date. It is only valid for one financial year. According to the law, a GTA that fails to file the declaration in time will be unable to provide services on a forward charge basis.
Goods & Services Tax (GST) | News and Updates
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