The authorities have set a deadline for the Goods Transport Agency (GTA) to file its declaration in Annexure V for the Financial Year 2023–2024. Declarations may be submitted up to March 15, 2023.
Before the start of this fiscal year, a declaration in Annexure V notified by CGST(Rate) Notification no. 03/2022 dated July 13, 2022 must be lodged with the jurisdictional authority when the Goods Transport Agency chooses to pay tax using the Forward Charge Mechanism (FCM) physically (Offline). The GST portal now allows users to submit the declaration electronically (on 24th Feb 2023).
According to the declaration’s specimen, it is not necessary to state in the declaration that the services would be rendered with a 12% or 5% GST rate on a forward charge basis.
Chance to File after Due Date
The government has not provided any details regarding the repercussions of GTAs failing to submit the declarations. According to the law, a GTA will not be permitted to offer services on a forward charge basis if the declaration is not filed. However the GTA can check the authority.
Submission of Declaration by newly registered GTA after due date
As of now there is no update from the government side whether they will accept the submissions after the due date. It is unclear how a newly established GTA (registered after the deadline for completing the declaration) can choose to pay tax for the current financial year using the advance charge mechanism and yet submit the declaration, even if the deadline has already passed.
For new GTA members who enrolled after the deadline, filing declarations would be challenging. Nonetheless, there is a potential that the government will anticipate these occurrences and take appropriate action. Such applicants will receive a time extension.
So if they impose restrictions, they won’t be able to use the input tax credit to pay for the automobiles they would typically buy at the start of their firm.
Applicability of Declaration
The GTA disclosures are only applicable during that specific fiscal year. The government announces the due date accordingly, and it has to be filed annually.You cannot change to the reverse charge method after choosing the forward charge for a financial year. Once submitted, declarations cannot be retracted for that fiscal year.
Steps to File
Step 1: Search GST Portal – www.gst.gov.in
Step 2: Go to Dashboard
Step 3: Under Services, you’ll see ‘User Services’
Step 4: Select “Opting Forward Charge Payment by GTA (Annexure V)”
Step 5: Select Financial Year and Apply
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