Advisory on Tax Payment Under Forward Charge Mechanism by GTA

Advisory on Forward Charge Mechanism by GTA

An option is provided by the GST department to all the existing GST taxpayers which involve Goods Transport Agencies. The Goods Transport Agencies which are looking for an option to pay tax under a forward charge mechanism to exercise this option.

To avail of that follow the below steps after logging in:-

1. Visit the GST Portal
2. Select the option “Services”
3. From the below options, choose “User Services”
4. Then “Opting Forward Charge Payment by GTA (Annexure V)

Moreover, the option in Annexure V Form must be submitted on the GST Portal. By the Good Transport Agencies before the financial year starts. One must note that once this option is selected, you cannot withdraw. In addition to it, the due date for filing Annexure V Form is 15^th March of the preceding financial year.

Official Words of the GST Advisory

Advisory on opting for payment of tax under the forward charge mechanism by a Goods Transport Agency (GTA)

25/02/2023

In compliance of Notification No. 03/2022-Central Tax (Rate), dated 13th July, 2022, an option is being provided on the portal to all the existing taxpayers providing Goods Transport Agencies Services, desirous of opting to pay tax under the forward charge mechanism to exercise their option. They can navigate Services > User Services > Opting Forward Charge Payment by GTA (Annexure V), after login, to submit their option on the portal.

Option in Annexure V FORM is required to be submitted on the portal by the Goods Transport Agencies every year before the commencement of the Financial Year. The Option once filed cannot be withdrawn during the year and the cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year.

Annexure V has been made available on the portal for GTA’s to exercise their option for the Financial Year 2023-24, which would be available till 15TH March 2023.

Thanking You,
Team GSTN

Conclusion

This was about the recent update from the GST Update. Thus, the option for payment of tax under the forward charge mechanism by a GTA is limited till 15^th March, 2023. Also, the process is also explained to make the payment of tax under forward charge easy for all taxpayers.

Stay connected to know more of the upcoming changes in GST. For any query relating to the same, feel free to consult our experts and get the solution and services of GST.