Notification No. 05/2023 - IT(R): GTA Forward Charge Extend

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Notification No. 05/2023 - Integrated Tax (Rate): Seeks to amend notification No. 08/2017- Integrated 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-sections (1), (3) and (4) of section 5, sub section (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with 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 the recommendations of the Council,

And on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- Integrated 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. 683(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 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.”.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: - The principal notification number 08/2017 - Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28th June, 2017 and last amended vide notification number 03/2022-Integrated Tax (Rate), dated the 13^th July, 2022 published in the official gazette vide number G.S.R. 542(E), dated the 13^th July, 2022.

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

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

Answer:
Notification No. 05/2023 seeks to amend Notification No. 08/2017 - Integrated Tax (Rate) and extends the deadline for Goods Transport Agencies (GTA) to opt for paying GST under the forward charge mechanism for the financial year 2023–24. This option must now be exercised by 31st May 2023.

Q2: What changes have been introduced for GTAs under this notification?

Answer:
The notification introduces two key changes:
GTA opting under forward charge must file the option by 31st May 2023.
New GTAs or those crossing the GST registration threshold mid-year can still opt in by filing Annexure V within 45 days of applying for GST or within 1 month of registration—whichever is later.

Q3: What is Annexure V and how does it apply to new GTAs?

Answer:
Annexure V is a declaration form used by a GTA to exercise the option of paying GST under forward charge. New GTAs must submit it within:
45 days from applying for GST registration or
1 month from getting GST registration (whichever is later).

Q4: Why is the forward charge option relevant for GTAs?

Answer:
Under reverse charge, the service recipient pays GST on GTA services. But opting for forward charge allows the GTA to collect and pay GST directly, which can help in input tax credit (ITC) claim management and simplified compliance.

Q5: What if a GTA misses the 31st May deadline?

Answer:
Missing the 31st May deadline means the GTA cannot opt for forward charge for the FY 2023–24 and will automatically fall under reverse charge provisions for that year.

Q6: Where can I file GST and manage GTA compliance online?

Answer:
You can manage GST registration, return filing, and compliance services through trusted GST Experts at 👉 Finodha.in.
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Q7: Who benefits from this extension under Notification No. 05/2023?

Answer:
Both existing and newly registered GTAs benefit. Existing GTAs get an extended window until 31st May, while new entrants can still avail the forward charge option if they meet the declaration criteria.

Q8: Is there any penalty for non-compliance with the updated provision?

Answer:
Although the notification doesn't specify penalties, non-compliance may lead to disputes or reversal of ITC claims. It is essential to comply with timelines to avoid adverse GST implications.

Q9: How does this impact clients hiring GTA services?

Answer:
Clients need to track whether the GTA has opted for forward charge. If not, under reverse charge, the client must pay the GST on services received, affecting their accounting and compliance obligations.

Q10: Where can businesses get assistance in handling GST changes like this?

Answer:
For expert help in navigating GST notifications, reverse vs. forward charge mechanisms, or GST filings, consult professionals at www.Finodha.in.

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Notification No. 05/2023 – IT(R): GTA Forward Charge Extend

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