Functionalities for GTA are LIVE on GST portal from 01st January, 2024!

On 26th July, 2023, CBIC had issued Notification No. 06/2023- Central Tax (Rate). By way of this notification, a new form was introduced for Goods Transport Agencies (GTAs) who earlier used to pay GST under forward charge, but now wish to pay GST under reverse charge mechanism. GSTN issued an advisory on 01st January 2024 about functionalities for Goods Transport Agencies (GTAs) that are made available on the portal in this regard.

Crux of Notification No. 06/2023- Central Tax (Rate)

By way of this notification, CBIC provided that the option of paying taxes under the forward charge mechanism by GTAs shall be exercised on or after the 1st of January of the preceding Financial Year but not later than the 31st of March of the preceding Financial Year. Earlier, it was to be exercised on or before the 15th of March of the preceding Financial Year.

Also, it is specified in this notification that the option exercised by GTA to pay GST on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration to revert under reverse charge mechanism on or after the 1st January of the preceding Financial Year but not later than31st March of the preceding Financial Year. Earlier, if the GTA, who opted for a forward charge mechanism last year, missed filing a fresh declaration for such an option in the current year, GSTN used to automatically change its option to reverse charge mechanism. Now, this requirement is relaxed by CBIC. Once, the forward charge mechanism is opted for any financial year, it will be continued unless specifically opted out by the GTA.

A significant update in this notification is the introduction of the declaration in Annexure VI. A new form is prescribed for exercising option by a Goods Transport Agency intending to revert under the reverse charge mechanism. It is to be filed by GTAs who used to pay GST under forward charge, but now wish to pay GST under reverse charge mechanism. Following is the format of such a declaration:

GSTN Advisory dated 01st January, 2024

• Filing of Online Declaration in Annexure V (declaration for opting in forward charge mechanism) and Annexure VI (declaration for opting out forward charge mechanism) for the existing GTA Taxpayers: As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023, the option by GTA to pay GST on Forward Charge mechanism or the Reverse Charge mechanism respectively on the services supplied by them during a Financial Year shall be exercised by making a declaration in Annexure V or Annexure VI from the 1st January of the current Financial Year till 31st March of the current Financial Year, for the next Financial Year.
  To comply with the above notification, online filing in Annexure V Form and Annexure VI Form is available on the portal for the existing GTA taxpayers for filing a declaration in Annexure V Form or Annexure VI Form for the succeeding FY 2024-25 from 01.01.2024 to 31.03.2024.
  To Access Annexure V Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).
  To Access Annexure VI Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting to Revert under Reverse Charge Payment by GTA (Annexure VI)
• Filing of Online Declaration in Annexure V for the Newly registered GTA Taxpayers: As per Notification No. 5/2023-Central Tax (Rate), dated 09.05.2023, the option to pay GST on Forward Charge mechanism on the services supplied to the Newly registered taxpayers can now be able to file their declaration within the specified due date for the current Financial Year i.e. 2023-2024 and onwards. The due date (before the expiry of forty-five days from the date of applying for GST registration or one month from the date of obtaining registration whichever is later) is now being configured by the system and the same will be displayed to the newly registered taxpayers on their dashboard. The newly registered GTA taxpayers can now file their online declaration on the portal for the current FY within the specified due date.
  To Access: Post login on the FO portal-Click YES on the pop-up message on post-login (or) Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).
• Uploading manually filed Annexure V Form for the FY 2023-24 on the portal: The Existing/ Newly registered GTA taxpayers who have already submitted Declaration in Annexure V Form for the FY 2023-24 manually with the jurisdictional authority are requested to upload their duly acknowledged legible copy of the Annexure V Form on the portal, mentioning correct particulars as mentioned in the physical Annexure V submitted, with the correct date of acknowledgement from jurisdictional office, where such physical Annexure V was filed for the record purposes. Further, it is informed that if Annexure V was filed manually within the specified due date for the FY 2023-24, he need not file it again on the portal for the FY 2024-25 or any succeeding FY. Using the manual upload facility, you can upload the legible copy of duly acknowledged manually filed Annexure V for 2023-24, with the correct particulars.
  To Access: Post login on the FO portal-Navigate to Services>>User Services>>GTA>> Upload Manually Filed Annexure V.
• As per the above notification, the option exercised by GTA to pay GST on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration in Annexure VI to revert under reverse charge mechanism.
• However, the GTAs who filed declarations for the FY 2024-25 on the portal for the period from 27.07.2023 till 22-08-2023 have been considered as filed and valid. Those taxpayers are requested that they need not file a declaration in Annexure V Form for the subsequent FYs if they wish to continue their option to pay GST on the Forward charge mechanism.

Conclusion :

The GSTN has eased the burden on GTAs paying taxes through the forward charge mechanism by exempting them from the requirement to file declarations annually. Additionally, the transformation of manual form compliance into an electronic format will significantly streamline the process, making it more accessible and user-friendly.