Notification No. 05/2023 - CT (R): GTA Forward Charge GST

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Notification No. 05/2023 - Central Tax (Rate): Seeks to amend notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 so as to extend last date for exercise of option by GTA to pay GST under forward charge.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (1), sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017),

The Central Government, on being satisfied that it is necessary in the public interest so to do, 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. 11/2017-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. 690(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, against serial number 9, in item (iii), in sub-item (b), in the entries under column (5), in condition (2), after the second proviso, the following provisos shall be inserted, namely:-

“Provided also that the option for the Financial Year 2023-2024 shall be exercised on or before the 31st May, 2023:

Provided also that a GTA who commences new business or crosses threshold for registration during any Financial Year, may exercise the option to itself pay Goods and Services Tax 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 Goods and Services Tax registration or one month from the date of obtaining registration whichever is later.”.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification number 11/2017 -Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and last amended vide notification number 03/2022-Central Tax (Rate), dated the 13^th July, 2022 published in the official gazette vide number G.S.R. 541(E), dated the 13^th July, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 05/2023 – Central Tax (Rate)

Q1: What is Notification No. 05/2023 – Central Tax (Rate) about?

Answer:
This notification, dated 9th May 2023, amends Notification No. 11/2017-Central Tax (Rate) to extend the last date for Goods Transport Agencies (GTAs) to opt for paying GST under the forward charge mechanism for FY 2023-2024. The new deadline is 31st May 2023.

Q2: Who does this amendment apply to?

Answer:
The amendment is specifically for GTAs who want to pay GST themselves instead of the recipient under the reverse charge mechanism (RCM). This provides operational flexibility and ease of compliance for transport businesses.

Q3: What is the new provision for newly registered GTAs?

Answer: GTAs starting a new business or becoming liable to register under GST in any financial year can exercise the option to pay GST under forward charge. They must submit a declaration (Annexure V) within:
45 days from applying for GST registration, or
30 days from receiving registration
Whichever is later.

Q4: What happens if the GTA doesn’t opt for forward charge within the time?

Answer:
If a GTA fails to exercise the option by the due date, the recipient of services will be liable to pay GST under the reverse charge mechanism, as per existing rules.

Q5: Why is this amendment significant?

Answer:
It ensures smoother business continuity for transporters and brings clarity on GST liability. It helps new GTAs make timely decisions and reduces compliance confusion.

Q6: Where can I file GST returns or register a new GTA business online?

Answer:
You can register, file returns, and manage your GST compliance through trusted professionals at Finodha:
🔹 GST Registration: https://finodha.in/online-gst-registration/
🔹 GST Return Filing: https://finodha.in/gst-return-filing/
🔹 GST Compliance Help: https://finodha.in/gst-compliance/
🔹 Setup Transport or Logistics Business: https://finodha.in/setup-business/

Q7: What is Annexure V?

Answer:
Annexure V is the declaration format used by GTAs to communicate their decision to pay GST under the forward charge. It must be submitted within the specified period as mentioned in the notification.

Q8: Can GTAs change their decision mid-year?

Answer:
No, once a GTA has opted for the forward charge in a financial year, the option remains applicable for the entire year. Changing it midway is not permitted under GST norms.