Facility to opt for the payment of tax under Forward Charge by GTA has been extended till 31st May 2023 for FY 2023-24

Notification No. 05/2023-CT(R) dated 09-May-2023

As per Notification No. 03/2022-CT(R), the rate of tax on GTA services had been rationalized and an option to pay the tax under forward charge @ 5% or 12% [CGST + SGST] has been provided to GTA service provider.

This option by GTA to itself pay GST on the services supplied by it during a Financial Year must be exercised by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year.

However, for FY 2023-24 this option for the Financial Year 2023-2024 can be exercised on or before the 31st May, 2023.

Further, a GTA who commences new business or crosses threshold for registration during any Financial Year, may exercise the option to itself pay GST on the services supplied by it during that Financial Year by making a declaration in Annexure V 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.