New GST Payment Rules for Goods Transport Agencies (Notification No. 5/2023-Central Tax)

Simplified Explanation of Notification No. 5/2023-Central Tax (Rate)

Purpose: This notification updates the rules for opting to pay Goods and Services Tax (GST) for Goods Transport Agencies (GTA) and makes amendments to the Central GST rate schedule for services.

Key Points:

1. Amendments to Conditions for Opting GST Payment:
   • New Deadline for FY 2023-24: For the Financial Year 2023-24, Goods Transport Agencies (GTAs) need to exercise their option for self-paying GST by May 31, 2023.
   • New Business or Registration Threshold: If a GTA starts a new business or crosses the threshold for GST registration during a financial year, they can choose to pay GST on their services themselves. To do this, they must:
     • Declare Option: Make a declaration in Annexure V.
     • Deadline for Declaration: Submit this declaration within 45 days of applying for GST registration or one month from obtaining registration, whichever is later.

2. Context of Amendment:
   • This notification amends Notification No. 11/2017-Central Tax (Rate), which sets out the GST rate schedule for various services. The changes apply specifically to the provisions related to the self-payment of GST by GTAs.

Example: Suppose a GTA starts its business on July 1, 2023, and registers for GST on August 15, 2023. The GTA can opt to pay GST on their services themselves by submitting the necessary declaration in Annexure V. They have until September 15, 2023 (45 days from registration), or September 15, 2023 (one month from registration), whichever is later, to make this declaration.