What is GTA in GST?

From what I know, in India, the most popular means of moving products is by roadway. Because any slowdown in shipping affects the entire business operations and transportation is a crucial component of the economy. The movement of products by roadway is handled by a transporter or courier service. There is a term in all this movement business that I got familiarised with recently and that is GTA in GST. Let me tell you about what is GTA under GST in detail here.

What is GTA under GST?

"Goods Transport Agency" is defined in Section 65B (26) of the Finance Act of 1994. Any individual who provides a facility in connection to the shipping of goods via roadway and provides shipping documents. The issuance of a consignment note (C/N) is a vital and necessary requirement. Before any road carrier could be placed under the authority of the GTA. This is all about what is GTA in GST.

Who is required to pay GST for GTA services?

If consumers are subject to the reverse charge, they are required to pay GST. There is a 6% centralised tax on all road-transported transportation. If the people mentioned below are the beneficiaries:

• Any industries controlled by or approved under the Factories Act, Act No. 63 of 1948.

• Any society incorporated under the Societies Registration Act 1860, Act No. 21 of 1860.

• Any cooperative society established by or adhering to any law.

• Any individual identified under the CGST Act, the IGST Act, the SGST Act, or the UTGST.

• A legal entity that has been registered or formed.

• any partnering organization, regardless of whether it is recognised by law, such as a group of people or a casual taxable individual.

What services in the GTA are specifically exempted from GST?

Taxes on the following facilities are not payable by a GTA. Transportation of the following items in a goods vehicle is a service offered by a goods transport firm:

• Items when the transportation fee for a shipment of goods conveyed in one vehicle is not more than INR 1,500.

• Food items like rice, flour, pulses, salt and milk are also prohibited. 

• Agricultural products.

• Other prohibited items include animal fertilizer, magazines or newspapers that are registered with the Registrar of Newspapers.

• Humanitarian supplies for victims of natural or man-made crises, tragedies, accidents, or mishaps.

• Army or defence materials.

• Goods for which the transportation fee for just one client doesn't really surpass INR 750.

This is all you need to know about the GTA under GST.