Section 9(3) Reverse Charge on Goods Transport Agency (GTA Service)
Last updated at March 16, 2023 by Teachoo
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%
Exception
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If truck operator charges 12% on Invoice, then Normal Charge is applicable
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For Certain Goods, Reverse Charge not applicable
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Example Agricultural Goods, Defense goods ,Newspaper
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if Amt is Small upto 750,then also this Rule not applicable
Note
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
Note
Reverse Charge is applicable on Person who is Making Payment to Transporter
He may be Consignor or Consignee
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