In this blog, we will understand whether a GTA and the recipient of transport services from a GTA should register under GST.
Registration for persons taking transportation service from a GTA
Persons who take transportation services from a GTA can be of 2 types:
- Persons who belong to the specified category of persons
- Persons who do not belong to the specified category of persons
Persons who belong to the specified category of persons
Certain specified category of persons are liable to pay tax on reverse charge on transport service taken from a GTA. These are:
- A factory registered under or governed by the Factories Act, 1948
- A Society registered under Societies Registration Act, 1860 or under any other law for the time being in force in any part of India
- A co-operative society established by or under any law
- A body corporate established by or under any law
- A partnership firm, whether registered or not under any law, including association of persons
- A casual taxable person
All these persons have to mandatorily register, irrespective of their turnover.
Persons who do not belong to the specified category of persons
Persons who do not belong to the above category of persons and avail transportation service from a GTA need to register only when their turnover crosses the threshold limit of Rs. 10 Lakhs in special category states and Rs. 20 Lakhs in rest of India.
Registration for a GTA under GST
GTA can be of 2 types:
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GTA exclusively providing services to specified persons
A GTA exclusively providing transport services to the specified persons who are liable to pay tax on reverse charge, is not required to register under GST. This means that even if their turnover crosses the threshold limit, they are not required to register under GST. This is because 100% of their supplies will be reverse charge supplies, on which they will not have any tax liability.
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GTA not exclusively providing services to specified persons
A GTA which is not exclusively providing transport services to the specified persons, who are liable to pay tax on reverse charge, has to register under GST when its aggregate turnover crosses the threshold limit. These are GTAs who provide services to sole proprietors, HUF (Hindu Undivided Family), etc.
Enrolment of unregistered GTAs in GST portal
All unregistered GTAs should enroll as a GTA in GST portal using Form GST ENR-01. After enrolment, a unique enrolment number will be issued to such GTAs. Using this enrolment number, unregistered GTAs can generate e-way bills from the GST portal.
