Important Keyword: Notification No. 05/2022 – Central Tax (Rate), GST amendments July 2022, GTA services forward charge, GST on residential dwelling rent, GST compliance,
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Table of Contents
F. No. 190354/176/2022-TRU
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 13th July, 2022
Notification No. 05/2022 - Central Tax (Rate): Seeks to amend Notification No 13/2017- Central Tax (Rate) dated 28.06.2017
[TO BE PUBLISHED IN THE GAZETTE OFINDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GSR......(E).-In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017),the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely: -
In the said notification, in the Table, -
(1). against serial number 1, in column (2), -
- the words, figures and symbols “who has not paid central tax at the rate of 6%,” shall be omitted;
- after the proviso the following proviso shall be inserted, namely: -
“Provided further that nothing contained in this entry shall apply where, -- the supplier has taken registration under the CGST Act, 2017 and exercised the option to pay tax on the services of GTA in relation to transport of goods supplied by him under forward charge; and
- the supplier has issued a tax invoice to the recipient charging Central Tax at the applicable rates and has made a declaration as prescribed in Annexure III on such invoice issued by him.”;
(2). against serial number 5, in column (2), in the sub-clause (2), in item (i), the words “by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority” shall be omitted;
(3). after serial number 5A and the entries relating thereto, the following serial number and entries shall be inserted, namely: -
| (1) | (2) | (3) | (4) |
| “5AA | Service by way of renting of residential dwelling to a registered person. | Any person | Any registered person.”; |
(4). after Annexure II, the following annexure shall be inserted, namely: -
“Annexure III
Declaration
I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax on services of GTA in relation to transport of goods supplied by us during the Financial Year ____________ under forward charge.”.
II. This notification shall come into force with effect from the 18th July, 2022.
(Rajeev Ranjan)
Under Secretary to
the Government of India
Note: - The principal notification no. 13/2017 -Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended vide notification no. 29/2019 -Central Tax (Rate), dated the 31st December, 2019 published in the official gazette vide number G.S.R. 971(E), dated the 31st December, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 05/2022 - Central Tax (Rate)
Q1: What is Notification No. 05/2022 – Central Tax (Rate) about?
Answer:
Notification No. 05/2022 – Central Tax (Rate), issued on 13th July 2022, amends Notification No. 13/2017-Central Tax (Rate). It introduces key changes in reverse charge mechanism (RCM) and forward charge options, specifically for Goods Transport Agency (GTA) services and renting of residential dwellings to registered persons. The changes are effective from 18th July 2022.
Q2: How does this notification impact GTA (Goods Transport Agency) services? 🚛
Answer:
Earlier, GTA services were largely covered under RCM. But with this amendment:
GTA suppliers can opt for forward charge by paying GST directly.
A declaration (Annexure III) must be made on invoices to confirm this option.
Once opted, the supplier must issue tax invoices charging GST at applicable rates.
👉 If you need help with GST Compliance, check here: GST Compliance Services
Q3: What new provision has been introduced regarding renting of residential dwellings? 🏠
Answer:
A new entry (5AA) has been inserted:
Service Covered: Renting of residential dwelling to a registered person.
Liability: Tax is payable under RCM by the registered recipient.
This is a significant shift, as earlier residential dwelling rent was exempt in most cases.
For GST Return Filing, visit: File GST Returns
Q4: What services were excluded from RCM liability under this notification?
Answer:
The amendment omits specific references to services like speed post, express parcel post, life insurance, and agency services provided to non-government entities. This simplifies compliance and reduces overlap.
Q5: What is Annexure III and why is it important? 📄
Answer:
Annexure III is a declaration format introduced for GTA service providers. By issuing this declaration on invoices, they confirm opting for forward charge under GST. Without this, tax liability may still fall on recipients under RCM.
Q6: From when are these changes applicable?
Answer:
The provisions of Notification No. 05/2022 – Central Tax (Rate) are effective from 18th July 2022. Businesses availing GTA or renting services should update their invoicing and compliance immediately.
Q7: How can businesses stay updated with such GST changes?
Answer:
Regular notifications like this impact compliance, invoicing, and tax liability. Engaging a GST Expert or GST Professional ensures proper compliance. You can connect with GST professionals at 👉 Finodha GST Experts.
Q8: What should registered businesses renting residential property do now? 🏢
Answer:
Businesses renting residential properties must:
Identify GST liability under RCM.
Pay tax on such rent via GSTR-3B.
Claim Input Tax Credit (ITC) if eligible.
For Private Limited Company Compliance, visit: ROC Compliance
🔑 Summary
Notification No. 05/2022 – Central Tax (Rate) brings major GST compliance changes:
- GTA can choose forward charge with declaration.
- Renting residential dwellings to registered persons is taxable under RCM.
- Certain services excluded from RCM scope.
Staying compliant is crucial for avoiding penalties. Businesses should update invoicing formats, track RCM liability, and ensure timely filings.
👉 For end-to-end GST support, check GST Return Filing Services.
Download PDF: Notification No. 05/2022 - Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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