CBIC inserts new Form for GTA intending to revert under RCM before GST Authority

The Central Board of Indirect Taxes and Customs (CBIC) vide notification No. 06/2023- Central Tax (Rate) G.S.R. 537(E), No. 06/2023- Integrated Tax (Rate) G.S.R. 538(E), No. 06/2023- Union Territory Tax (Rate) G.S.R. 539(E) issued on 26th July 2023 issued new form for exercising option by a Goods Transport Agency (GTA) intending to revert under reverse charge mechanism to be filed before the commencement of any financial year to be submitted before the jurisdictional GST Authority.

Central Tax (Rate)

In the said notification, – (A) in the Table, (i) against serial number 3, in column (3), in item (ie), following explanation shall be inserted, namely:

“Explanation. –This item refers to sub-items of the item (iv), (v) and (vi), against serial number 3 of the Table as they existed in the notification prior to their omission vide notification No. 03/2022- Central Tax (Rate) dated the 13th July,2022.”;

(ii) against serial number 9, in column (3), in item (iii), in sub-item (b), in the entries under column (5), in condition (2), –

(a)for the words, figures and letters “on or before the 15th March of the preceding Financial Year”, the words, figures and letters ―on or after the 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year” shall be substituted;

(b)after the fourth proviso, the following proviso shall be inserted, namely:-

“Provided also that the option exercised by GTA to itself pay GST on the services supplied by it during a Financial Year shall be deemed to have been exercised for the next and future financial years unless the GTA files a declaration in Annexure VI to revert under reverse charge mechanism on or after the 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year.”;

(iii) against serial number 24, in column (3), in item (i), in the Explanation,in clause(i) , sub-clause(h) shall be omitted.

(B) in Annexure V,

(i) in para 2, for the words “end of the financial year for which it is exercised”, the words and figures ―the start of the financial year for which I exercise option to revert under reverse charge mechanism by filing Annexure VI on or before the due date” shall be substituted;

(ii) in note to the Annexure, for the words, figures and letters “The last date for exercising the above option for any financial year is the 15th March of the preceding financial year‖, the words, figures and letters “The above option for any Financial Year shall be exercised on or after 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year” shall be substituted;

The notification has amended Integrated Tax (Rate) and Union Territory Tax (Rate) similarly.

Form

After Annexure V, the following Annexure VI has been inserted. The Form for exercising option by a Goods Transport Agency intending to revert under reverse charge mechanism to be filed before the commencement of any financial year to be submitted before the jurisdictional GST Authority.

The form shall contain Legal Name, GSTIN, PAN No., Signature of Authorized representative, Name Authorized Signatory, Full Address of GTA: (Dated Acknowledgment of jurisdictional GST Authority)..etc.

It reads as follows:

1. I/We option to pay GST on the services of GTA in relation to transportation of goods supplied by us during, the financial year. ….. ….under forward charge by filing Annexure V on ………………..;
2. I hereby declare that I want to revert to reverse charge mechanism for Financial Year………;
3. 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.

It is to be noted that the above option for any Financial Year shall be exercised on or after 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year.

The notification shall come into force with effect from 27th July, 2023.

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