CBIC extended deadline to opt for Forward Charge option by GTAs (Goods Transport Agencies) for FY 2023-24.

CBIC extended the deadline to opt for forward charge by GTAs for FY 2023-24 from 15th March 2023 to 31st May 2023 vide Notification No.05/2023 - Central Tax (Rate) dated 09.05.2023.

Initially, CBIC vide Notification No. 03/2022-Central Tax (Rate) dated 13th July 2022, provided an option to all GTAs (Goods Transport Agencies) to opt for forward charge mechanism in place of reverse charge mechanism. The original deadline was 15th March 2023.

CBIC also made a provision in the law to opt for forward charge by new registrations.

A GTA who commences new business or crosses threshold for registration during any Financial Year, may exercise the option to itself pay GST on the services supplied by it during that Financial Year by making a declaration in Annexure V before the expiry of 45 days from the date of applying for GST registration or one month from the date of obtaining registration whichever is later.

How can GTAs opt for Forward Charge Mechanism?

A declaration / consent in Annexure V FORM is required to be submitted on the GST Portal by the GTA (Goods Transport Agencies) every year before the commencement of the Financial Year.

Whether GTA can change the option later?

The option once exercised cannot be withdrawn or changed during the year.

What is the cut-off date for choosing the option?

The cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year.

How to opt for forward charge option?

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Goods Transport Agency

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