Action to be taken before 31.03.2025_Part 2: Filing of Declaration by Transporter under GST_Annexure-V
As the Financial year comes to end, there are many compliances which are to be done before 31.03.2025 to avoid any adverse consequences. One of such compliance is the declaration by the Goods Transport Agency in Annexure-V.
The GTA has undergone a drastic amendment with effect from 18th July, 2022. Earlier, the GST on GTA services was required to be paid by the service recipient under RCM. However, post amendment the GTA was given an option to pay GST under Forward Charge. To exercise the option of payment of GST under the forward charge method, GTA is required to file a declaration in form Annexure V.
The GTA may opt from either of following two options for payment of GST:
Payment of GST under Forward Charge Mechanism, i.e., GST shall be paid by the GTA on its own. The Recipient shall be eligible to claim the ITC on such service subject to Section 16 and 17 of CGST Act.
Payment of GST under Reverse Charge Mechanism, i.e., GST shall be paid by the service recipient under RCM and the recipient shall be entitled to claim the ITC of such GST.
If GTA opt for payment of GST under Forward charge then GST can be charged at either of the following Rates:
5%, No ITC of Inward supplies shall be available to the GTA;
12%, ITC of inward supplies shall be available to the GTA
Option can be opted by filing declaration in Annexure-V post login on GST portal. Such Annexure is to be filed before 31st March, 2025 for FY 2025-26.
