GTA and EWAY BILL related updates under GST

Introduction-

That vide Notification No. 03/2022- Central Tax (Rate) | Dated: 13th July, 2022 It was mandated for a good transport agency to file a declaration in Form Annexure V if they intended to exercise the option of charging 12% GST under the forward charge mechanism. Option once exercised cannot be withdrawn. And if such a declaration is not filed, taxpayer had no other option than to continue with the reverse charge mechanism wherein 5% GST shall be paid by the recipient of the service and there would exist no obligation on the Goods Transport Agency with regards to paying GST on the GTA services rendered. There arose multiple issues in implementing the provisions of such Notification, hence the undermentioned changes were brought in/advisories were issued.

Option for forward charge by GTAs

• GSTN has enabled a new feature for online filing of declaration in Annexure-V by newly registered Goods Transport Agencies (GTAs).

• This declaration is required for opting for payment of GST under forward charge by the GTAs.

• This utility is designed and meant for GTAs newly registered by which users can upload manual Annexure -V.

• Annexure -V Form can be accessed through Dashboard > Services > User Services > GTA > Opting Forward Charge payment by GTA(Annexure-V)

 Advisories for Functionalities on GSTN Portal for GTAs

The following Functionalities have been made available on the portal for the GTA Taxpayers:

• Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers [As per the Notification No. 06/2023-Central Tax (Rate), dated 26.07.2023.]

• To Access Annexure V Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).

• To Access Annexure VI Form: Post login on the FO portal-Navigate to Services>>User Services>>GTA>>Opting to Revert under Reverse Charge Payment by GTA (Annexure VI).

• Filing of Online Declaration in Annexure V for the Newly registered GTA Taxpayers [As per the Notification No. 5/2023-Central Tax (Rate), dated 09.05.2023]

• To Access: Post login on the FO portal-Click YES on the pop up message on post login (or) Navigate to Services>>User Services>>GTA>>Opting Forward Charge Payment by GTA (Annexure V).

• Uploading manually filed Annexure V Form for the FY 2023-24 on the portal.

• By utilizing the manual upload facility, one can upload the legible copy of duly acknowledged manually filed Annexure V for 2023-24, with correct particulars.

• It is also advised 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.

• The GTAs who filed declaration for the FY 2024-25 on the portal for the period from 27.07.2023 till 22-08-2023 has been considered as filed and valid. Those taxpayers are requested that they need not file declaration in Annexure V Form for the subsequent FYs if they wish to continue their option for pay GST on Forward charge mechanism.

E-WAY Bill related update-

National Informatics Centre on 05.01.2024 issued an Advisory regarding Blocking the generation of E-Way Bill without e-Invoice/IRN details for B2B and B2E transactions for e-invoice enabled tax payers e-Invoice has been operationalised since October 2020 for the taxpayers with Annual Aggregate Turn Over (AATO) above Rs. 500 Crores and eventually in a phased manner, e-Invoice generation is made mandatory for taxpayers with AATO above Rs. 5 Crores. From day-one, E-Invoice is seamlessly integrated with e-Way bill system and accordingly e-Way bills are generated along with e-Invoice. That is, during e-Invoice generation, if the transportation details are sent, the e-Waybill is automatically generated. Most of the tax payers are generating the e-invoice along with the e-way bill.

However, on analysis it is found that some of the taxpayers, who are eligible for e-Invoicing, are generating e-Waybills without linking with e-Invoice for B2B and B2E transactions. In some of these cases, the invoice details entered separately under e-Waybill and e-Invoice are not matching with respect to the certain parameters. This is leading in mismatch in the e-Waybill and e-Invoice statements.

Hence, to avoid such situations, e-Waybill generation will not be allowed without e-Invoice details from 1st March 2024. This is applicable for e-invoice enabled tax payers and for the transactions related to Supplies under B2B and Exports. However, EWBs for other transactions such as B2C and non-supplies will function as usual without any change.

Check and Balances

e-Waybill generation process will be incorporated with appropriate checks for taxpayers (Suppliers) eligible for e-Invoicing. In case of B2B and B2E (Exports), direct e-Waybill generation without e-Invoice will not be allowed for Suppliers eligible for e-Invoicing. This applies to the E-Waybill categories of Supply/Exports/SKD/CKD/Lots.

However, e-Waybill generation for transactions related to B2C and other non-Supplies will be allowed as usual. Similarly, for the E-Way Bills generated by transporter, similar check would be enforced on the Supplier GSTIN. Other operations such as Part-B updating, transporter Id updating, etc. will continue as usual without any change.