GST under reverse charge on GTA service - Logitax

GST under reverse charge on GTA service

Case Details : GST under reverse charge on GTA service- transport of exempted goods


Declared By : Karnataka - Advance Ruling on 27th October 2022

What Happened Exactly :

  1. Applicant is the manufacturer and supplier of animal feeds, classifiable under HSN 23099020, which are exempted from GST.
  2. They use the services of Goods Transport Agencies (GTA) to transport their products/goods and pay the freight/transportation charges to the transport operators.
  3. GTA services fall under Reverse Charge Mechanism.
  4. The applicant saught advance ruling as to whether applicants is liable to pay GST under Reverse Charge Mechanism for the GTA Services procured from the respective service providers being the manufacturer and supplier of exempted goods.

Court's Decision :

  1. The applicant is registered person under GST Act and located in the taxable territory.
  2. Applicant is recipients of the services of the GTA and Security services, which are covered under the category of supplies attracting GST liabilities on reverse charge basis.
  3. Section 9(3) of the CGST Act stipulates that all the provisions of the Act shall apply to the recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both, where the tax shall be paid on reverse charge basis by the recipient.
  4. Thus the recipient of service is liable to pay GST in respect of the services notified under Section 9(3) of the CGST Act r/w Notification 13/2017-Central Tax (Rate).

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