Garuda & Co. started a business in April 2022 of goods transportation by road and has a practice of issuing the consignment note. It has opted to choose the forward charge mechanism and is paying 12% GST even after 17 July 2022. Is this the right treatment?
It can do so only if it has made a declaration in Annexure V on or before the 16th August, 2022 before the jurisdictional GST Authority. It may be noted that such declaration is to be made in physical mode and not the electronic mode.
In case such declaration is not made then by law presumes that such services provided by GTA is covered under RCM @ 5% without ITC.