Recently, the Goods and Services Tax Network has enabled a facility for all the GST-registered Goods Transport Agencies (GTA) to file Annexure-V on the portal. The previous deadline was 15th March of 2023 for FY 2023-24. On 9th May 2023, this deadline was extended to 31st May 2023.
All existing GTAs who want to pay GST on a forward charge basis can do so after filing Annexure-V on the GST portal on or before the extended time limit of 31st May 2023. The CBIC issued three GST rate notifications under the Central Tax, Integrated Tax and Union Territory Tax on 9th May 2023, bringing this change.
Central Tax (Rate), Integrated Tax (Rate) and Union Territory Tax (Rate) notifications 5/2023 provide direction for newly registered GTAs as well. The notifications specify that if GTA got newly registered under GST or crossed the threshold for GST registration during the financial year, they must apply in Annexure-V to opt for forward charge payment of GST before a fixed deadline.
They must act before the expiry of 45 days from the date of the GST registration application or one month from the date of getting registration, whichever is later.
For the financial year 2022-23, the time limit to exercise this option using Annexure-V was 16th August 2022, but it had to be filed physically with the jurisdictional officer. FY 2023-24 is the first financial year since the GSTN introduced the online facility for GTA taxpayers to submit Annexure V.
However, there was not enough time for taxpayers when the online facility was introduced closer to the 15th March deadline, even though the notification was passed in July 2022. Many taxpayers would have missed the deadline. Accordingly, the extension is a significant relief for GTAs who missed filing Annexure-V.
Also, newly registered GTAs during FY 2023-24 would have been inconvenienced had this online facility closed by 15th March. With the facility kept open for a defined period, they can opt for paying GST on a forward charge for the financial year.
It must be noted that if a GTA opts to pay tax on a forward charge, they must also declare in Annexure III while issuing the tax invoice to the recipients. Any failure to follow the rules, GTA will be considered non-compliant and could attract penalties.
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