Filing of Annexure V Declaration by Goods Transport Agency
Filing of Annexure V Declaration by Goods Transport Agency (GTA)
Goods and Services Tax (GST) taxability in respect of Goods Transport Agency (GTA) has undergone a drastic amendment with effect from 18th July 2022.
As we are aware, from the inception of GST i.e. from 1st July 2017, in case the GTA service is provided to the specified categories of persons, GST gets payable by the service receiver under Reverse Charge Mechanism. However, post amendment, GTA is granted an option to pay GST under the forward charge method.
To exercise the option of payment of GST under the forward charge method, GTA is required to file a declaration in form Annexure V. Format of the said form Annexure V is notified vide notification no. 03/2022- Central Tax (Rate) dated 13th July 2022.
The present article provides a brief of amendment in respect of GTA as effective from 18th July 2022; understanding of declaration in Annexure V; steps for filing of Annexure V declaration via GST portal; cut-off date of filing Annexure V and other important points and synopsis thereon.
Brief of amendment in respect of GTA as effective from 18th July 2022 –
Notification no. 03/2022- Central Tax (Rate) dated 13th July 2022 for the first time came up with an option for GTA to pay GST under the forward charge method. Accordingly, effective from 18th July 2022, GTA has the following two options –
Option 1 – GTA opts for payment of GST under the forward charge method
For exercising the option, GTA needs to furnish a declaration in form Annexure V.
Notably, under the said option, GTA can pay GST either @ 5% (input tax credit will not be available) or @ 12% (input tax credit will be available).
Importantly, here, the service provider i.e. GTA will pay GST under forward charge, and hence service receiver will not be liable to GST under the reverse charge mechanism.
|Option 2 – GTA doesn’t opt for payment of GST under the forward charge method here||
Here, as GTA doesn’t opt for payment of GST under forward charge. Following specified categories of service recipient will be liable to pay GST under the reverse charge mechanism –
1. Registered Factory (registered under Factory Act, 1948);
2. Registered society (registered under the Societies Registration Act, 1860);
3. Any person registered under GST;
4. Any cooperative society;
5. Partnership firm;
6. AOP (Association of Persons);
7. Body corporate;
8. Casual taxable person.
Understanding Declaration in Annexure V –
Annexure V is a form for exercising the option by GTA for payment of GST under forward charge. Annexure V is to be filed online via the GST portal. The format of the declaration in Annexure V is very simple. It mainly covers the following two declarations –
- GST registration is either applied for or obtained by GTA and GST payment on GTA service will be done under forward charge by provisions of section 9(1) of the Central Goods and Services Tax Act, 2017.
Accordingly, GTA will comply with all the provisions of CGST as applicable to the person liable to pay tax about the supply of goods/ services;
- Option once exercised will not be allowed to be changed and will remain valid till the end of the respective Financial Year.
In case, GTA wants to opt for payment of GST, Annexure V needs to be furnished, by GTA, before the commencement of each Financial Year.
Steps for filing of Annexure V Declaration via GST portal –
To opt under the Forward Charge taxation, GTA must furnish a declaration in Annexure V via the GST portal. Steps for online furnishing of declaration in Annexure V via the GST portal are summarized herein below –
STEP 1 – Go to the GST portal, i.e., https://www.gst.gov.in/;
STEP 2 – Click ‘Login’ and provide the appropriate ‘Username’ and ‘Password’;
STEP 3 – Post login, navigate the following path –
Services – User Services – Opting Forward Charge Payment by GTA (Annexure V)
STEP 4 – Post-reading the pop-up box, click ‘Proceed’;
STEP 5 – Select the respective Financial Year and click ‘Go’;
STEP 6 – Annexure V will appear. Select the checkboxes in front of two declarations;
STEP 7 – Click ‘Proceed to file’.
The cut-off date for filing Annexure V and other important points
The cut-off date for filing Annexure V Declaration by GTA is 15th March of the preceding Financial Year. Meaning thereby that for availing option for Financial Year 2023-2024, GTA needs to furnish Annexure V on or before 15th March 2023.
Other important, relevant points to be noted are –
- Option in Annexure V Declaration is to be executed via the GST portal by GTA every year before the commencement of the respective Financial Year;
- Once the option to pay GST on forward charge is executed by GTA cannot be withdrawn during the entire Financial Year;
- If Annexure V declaration is not furnished by GTA, it would be assumed that GTA has opted not to pay GST and accordingly, GST will get payable by the specified service receiver under reverse charge.
Synopsis of filing of Annexure V Declaration by GTA –
Synopsis of filing of Annexure V declaration by GTA are highlighted hereunder –
- From 18th July 2022, GTA has option to pay GST @ 5% (without input tax credit) or @12% (with input tax credit) under forward charge;
- For exercising payment of GST under forward charge, GTA will have to furnish a declaration in Annexure V;
- Annexure V is to be furnished online;
- The cut-off date for furnishing Annexure V is 15th March of the preceding Financial Year;
- Option of payment of GST by GTA once exercise will remain valid for the entire Financial Year, and GTA will not be allowed to change the executed option.