Goods transport agencies and reverse charge

A goods transport agency (GTA) carries goods by road and issues a consignment note. GST on GTA services frequently falls under reverse charge.

How it usually works

For many specified recipients (companies, registered firms and others), the recipient pays GST on the freight under reverse charge, commonly at 5% without input credit for the GTA. GTAs also have an option to pay under forward charge at notified rates.

If you pay freight to a GTA, check whether RCM applies to you and pay it with a payment voucher.