The Goods and Service Tax Network (“GSTN”) has issued an Advisory dated 30th May, 2023 on the filing of declaration in Annexure V by the Goods Transport Agency opting to pay tax under the forward charge mechanism.
The GTAs, who commence business or cross registration threshold on or after 1st April, 2023, and wish to opt for payment of tax under forward charge mechanism are required to file their declaration in Annexure V for the FY 2023-24 physically before the concerned jurisdictional authority.
Once filed, the same cannot be withdrawn during the financial year. In simple words, the GTA who files Annexure V cannot switch back to RCM in between the financial year.
The declaration may be filed within the specified time limits, as prescribed in Notification No. 05/2023-Central Tax (Rate), dated 9th May 2023 whereby the CBIC had extended for exercising the option to pay tax under the Forward Charge for Financial Year 2023-24 by the Goods Transport Agency till 31st May, 2023 as against the earlier date of 15th March, 2023.
For ready reference of our readers the format of Annexure V is given below:
“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:
(Dated acknowledgment of jurisdictional GST Authority)
The Advisory can be accessed at: https://www.gst.gov.in/newsandupdates/read/587
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