GSTN enabled a declaration in Annexure-V to opt for FCM by GTA

GSTN enabled Option to file a declaration in Annexure-V to opt for payment under Forward Charge Mechanism by Goods Transport Agency (GTA).

The functionality is available at : Dashboard – Services – User Services – Opting Forward Charge payment by GTA (Annexure V) – Select Year & apply.

Last date for submission of declaration for the Financial Year 2023-24 is 15.03.2023.

In 47th GST Council meeting the Goods transport agency (GTA) was given option to pay GST at 5% or 12% under forward charge. The said option has to be exercised at the beginning of Financial Year. RCM option to continue.

Notification no. 11/2017-Central Tax (Rate), dated the 28th June, 2017 has been amended vide Notification no. 03/2022-Central Tax (Rate) dated 13.07.2022. Vide this notification serial no. 9 was amended which provides that GTA can exercise the option to itself pay GST on the services supplied by it at 5% or 12% GST. For the same GTA has to exercise an option by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year:

From GSTIN

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 The Option once filed cannot be withdrawn during the year and the cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year.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

Annexure V

FORM

Form for exercising the option by a Goods Transport Agency (GTA) for payment of GST on the GTA services supplied by him under forward charge before the commencement of any financial year to be submitted before the jurisdictional GST Authority.

Reference No.-

Date :-

1. I/We______________ (name of Person), authorised representative of M/s……………………. have taken registration/have applied for registration and do hereby undertake to pay GST on the GTA services in relation to transportation of goods supplied by us during the financial year……………under forward charge in accordance with section 9(1) of the CGST Act, 2017 and to comply with all the provisions of the CGST Act, 2017 as they apply to a person liable for paying the tax in relation to supply of any goods or services or both;

2. I understand that this option once exercised shall not be allowed to be changed within a period of one year from the date of exercising the option and will remain valid till the end of the financial year for which it is exercised.

Legal Name: –

GSTIN: –

PAN No.

Signature of Authorised representative:

Name of Authorised Signatory:

Full Address of GTA:

1. (Dated acknowledgment of jurisdictional GST Authority)
2. Note: The last date for exercising the above option for any financial year is the 15th March of the preceding financial year. The option for the financial year 2022-2023 can be exercised by 16th August, 2022.”