What is the new notification for GTA 2023?

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Goods and Services Tax (GST) is a comprehensive indirect tax system that was introduced in India in 2017. The GST scheme has been updated in several ways in recent months, including the Goods Transport Agency (GTA) scheme. These updates have made it easier for GTAs to comply with GST rules and have also provided some flexibility in the manner in which GTA services are taxed.

GTA stands for Goods Transport Agency in GST. GTA is a person who provides services in relation to transportation of goods by road and issues a consignment note or other similar document.

Under the GST law, GTA services are taxable at the following rates:

  • 5% without input tax credit (ITC)
  • 12% with ITC

50th GST Council meeting
In the 50th GST Council meeting held on 11th July 2023, the Council provided a relaxation for Goods Transport Agencies (GTAs) wishing to pay GST on a forward charge basis. GTAs will not be required to file a declaration for paying GST under forward charge every year. The option, once exercised for a particular financial year, will be deemed to have been exercised for future financial years unless a declaration is filed to revert that decision. 

Further, the deadline to exercise this option will now be 31st March of the preceding financial year instead of 15th March.
Note: These decisions will come into force once notified by the CBIC.

GTA Updates in GST: What You Need to Know


The Goods Transport Agency (GTA) scheme under GST has been updated in a number of ways in recent months. These updates have made it easier for GTAs to comply with GST regulations and have also provided some flexibility in the way that GTA services are taxed.

Here are some of the key updates to the GTA scheme in GST:

  • Introduction of a forward charge option: This option allows GTAs to pay GST on their services at the time of supply, rather than having the recipient of the services pay GST at a later date. This option can be beneficial for GTAs as it allows them to claim input tax credit on the goods and services that they use to provide their services.
  • Clarification of the place of supply of GTA services: Previously, there was some uncertainty about where GTA services were deemed to be supplied for GST purposes. However, the recent updates have clarified that the place of supply of GTA services is the location where the goods are handed over to the GTA for transportation. This clarification has made it easier for GTAs to determine the correct GST rate to apply to their services.
  • Flexibility in the GST rate that can be applied to GTA services: GTAs can now choose to pay GST on their services at a rate of 5% or 12%. This flexibility can be beneficial for GTAs as it allows them to choose the rate that best suits their business needs.

These updates are expected to benefit GTAs in a number of ways, including:

  • Increased compliance with GST regulations
  • Reduced compliance costs
  • Increased flexibility in the way that GTA services are taxed

The GTA scheme is an important part of the GST system and these updates will help to ensure that the scheme continues to operate effectively.

Here are some of the key things that GTAs need to know about the recent updates:

The forward charge option is available for all GTAs, regardless of their turnover.
The place of supply of GTA services is the location where the goods are handed over to the GTA for transportation
GTAs can choose to pay GST on their services at a rate of 5% or 12%.

The GST updates are a positive development for the GTA sector and will help to ensure that GTAs can continue to provide their services in a compliant and efficient manner.

If you are a GTA, it is important to be aware of the recent updates to the GST scheme. You can find more information on the GST website or by contacting your tax advisor.

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