Dear Sir/Madam, We are currently into freight forwarding & CHA business(don't hv own license.Use CHA license of a sister concern) .We are sub contracting transportation services. Kindly address our below query We do not have any goods carrier vehicle for GTA registration. We hire vehicles from another transporter. Can we act as a GTA by issuing consignment note under the same PAN? Will such registration affect ITC availment of our other business segments ?Do we need to maintain separate BOA in Tally for GTA services OR Do we hv to form a separate Company for carrying out Transportation Business
Hello,
You will be considered as GTA only and Yes you can issue Consignment note as sub contractor and not necessrily you should own any truck
No it will not effect ITC Availment of other business. however if you have any ITC speicifically attributed to GTA Service than same will not allow under Rule 42 & Rule 43
Yes its advisable to maintain seperate books of accounts
No need to form a seperate company
Sir/Mam,
Acc. to your query your question related to the classification of GTA i.e. who classify to be a GTA
Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no.12/2017-Central Tax (Rate) dated 28.06.2017.
(ze) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;
Referring to your case even if you are hiring the vehicles from the another transporter then also you are eligible to act as GTA, since only above two conditions needs to be fulfilled. Law does not require to have goods vehicles registered in your name and you do not need to obtain GST registration if your services falls under RCM and your services will only be covered under RCM if you are wholly and solely engaged in the business of GTA and your supply is only to the specified category of person otherwise you have to charge GST at forward rate but you can provide ancillary services like loading/unloading which is necessary for transportation.
Also important to note here is that Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA. As a corollary, the services provided by such individual transporters who do not issue a consignment note will be covered by the entry at s.no.18 of notification no.12/2017-Central Tax (Rate), which is exempt from GST. In this Case, you need to show your supply under exempt supply category for transportation and needs to maintain Separate Books of Accounts in tally to bifurcate your exempt supply with taxable supply.
So my opinion to you is that you need not to form a separate company but instead work in the same company and maintain the separate books of accounts and bifurcate your sales in exempt, taxable, RCM category as the case may be.
Hope i am able to solve you query.
Please do rate if you like the consultation.
Thanks & Best regards
CA Shubham Bansal
Hello,
Yes, you can act as a GTA. The definition of GTA covers a person providing transportation services by road issuing a consignment note. Ownership of the vehicle is not necessary.
Yes, separate books of accounts for the GTA services would be required.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
-Yes, you will considered as GTA.
-Yes, it is advisable to maintain separate books of accounts.
-No, there is no need to form separate company.
Hi
1. Yes you can do so.
2. Yes you need to maintain separate BOA.
3. No you don't need to form a separate company.
You can hire other carriers
