GTA Service means Goods Transport Agency Service (Freight Service or Invoice of Truck operator)
It is most common service under Reverse Charge
Almost all dealers and factories receive goods from suppliers or send goods to customers using truck
So GST is applicable on amount paid to truck operator @ 5%
  1. If truck operator charges 12% on Invoice, then Normal Charge is applicable
  2. For Certain Goods, Reverse Charge not applicable
  3. Example Agricultural Goods, Defense goods ,Newspaper
  4. if Amt is Small upto 750,then also this Rule not applicable

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Reverse Charge under this rule is Compulsory if We are a Company or Partnership
However for Proprietorship, this rule is applicable only if we are registered


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Reverse Charge is applicable on Person who is Making Payment to Transporter
He may be Consignor or Consignee

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Section 9(3) Reverse Charge on Goods Transport Agency (GTA Goods Transport or Freight Service Provided to Factory, Society ,Partnership, Company or any Registered Business located in Taxable Territory is covered in Reverse Charge if Rate Charged is not 12% Any Register Person or Any Factory or Any Company Partnership /HUF located in India Freight Service GTA Rate on Bill 12% 5% 0% Normal Charge Reverse Charge Reverse Charge If Small Amount Pur + Freight Certain Goods Exempt (Transportation Charges 750 for consignment or up to 1500 for truck) Exempt (Agricultural Goods, Newspaper, Defense Equipment) Treat as Purchase (Normal Charge) Deposits GST Any Register Person or Any Factory or Any Company/Partnership/HUF located in India Freight Service GTA Partnership Company Service Receiver is Proprietorship Registered Unregistered Always Reverse Charge Rev Charge Not Applicable Always Reverse Charge Always Reverse Charge Suppose A sells Goods to B through TRUCK T Who Pays Reverse Charge B Sale of Goods A T TRUCK If A pays T Then A Deposits Reverse Charge If B pays T Then B Deposits Reverse Charge B A B A T Freight T Freight Deposits GST Deposits GST Sale of Goods Sale of Goods

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.