What is the Full Form of GTA in GST?
GTA full form in GST is Goods Transport Agency. In accordance with Section 65B of the Finance Act of 1994, “Goods Transport Agency” refers to any individual who offers services relating to the transportation of goods by roadway and issues consignment notes, regardless of the name given to them. Therefore, the issuance of a Consignment Note was a crucial and necessary condition under the Service Tax regime before any road carrier could be included in the scope of GTA. Any individual who offers services related to the transportation of goods by roadway and issues consignment notes is considered a “goods transport agency”;
Therefore, it is clear that the issuing of a consignment note is a requirement in order for a service provider to be regarded as the Goods Transport Agency. If the transporter does not give such a consignment note, the supplier will not fall under the purview of a goods transport agency. When a consignment note is produced, it means that the transporter has acquired the items’ lien and has taken on responsibility for them up until their successful delivery to the recipient. Only the operations of such GTAs, who act as agencies, are included in the scope of the GST. Individual truck/tempo drivers are not encompassed within the definition of the term GTA if they do not submit any consignment notes. Therefore, the services rendered by such individuals transporters who fail to produce a consignment note would be covered by the provision under section 18 of notification number 12/2017-Central Tax, which would be free from GST.