Definition of GTA

Bare Law

As per the NN 11/2017 CT rate, “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

Interpretation

As per the definition not only transportation services by road but also any support services provided in relation to that will be covered under the definition of GTA.

Rates of GST Applicable on GTA

Bare Law

NN 11/2017 CT rate, prescribe the concession rate for GTA services as well as Support services under GTA which is 5% subject to condition that credit of input tax charged on goods and services used in supplying the service has not been taken.
As per Explanation (iv) given in NN 11/2017 CT rate, Wherever a rate has been prescribed in this NN subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,-

(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

(b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.
As per the NN 20/2017 of Integrated Tax Rate, NN 13/2017 of Central Tax Rate and 22/2017 of Central Tax Rate, GTA are allowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year)

Interpretation

If GTA opts to pay 12% for services  in relation to transportation of goods by road  then his services are not covered under reverse charge irresepective of the fact that they are providing services to registered or unregistered persons. Hence GTA opting to pay 12% GST will always be covered under forward charge and be eligible to claim ITC.
If GTA opts to pay 5% for services in relation to transportation of goods by road  then his services will be covered under reverse charge if provided to Specified persons mentioned in NN 13/2017 of Central Tax Rate and will be covered under forward charge if provided to other than specified persons mentioned in NN 13/2017 of Central Tax Rate.

Exemption from GST Allowed to GTA

As per NN 12/2017 of Central Tax Rate

1. Services provided by a goods transport agency, by way of transport in a goods  carriage of –
 (a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
 (e) organic manure;
 (f) newspaper or magazines registered with the Registrar of Newspapers;
 (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or                                       
 (h) defence or military equipments.               

AND

2. Services by way of giving on hire –
(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods.
Are exempt from GST.

Exemption from Registration Allowed to GTA

Bare Law

As per Section 23(2) of CGST Act, The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
 
As per NN 5/2017 of central tax issued in Section 23(2) of CGST Act , the Central Government hereby specifies the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act.
 
Section 24 of CGST Act says that Notwithstanding anything contained in sub-section (1) of section 22, persons making any inter-State taxable supply shall be required to be registered under this Act
 
Interpretation

Govt exempts persons covered under RCM u/s 9(3) of CGST Act, from having registration under GST as per section 23(2) and Section 24 makes registration mandatory for the persons making inter state taxable supply.
 
But here specific section is 23(2) and hence it will prevail over section 24 as per the law of Interpretation. Therefore, GTA making inter state taxable supply is also Exempted from having registration under GST.
 
Composition Scheme for GTA

Composition scheme is not available for service providers except supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration as per Section 10 of CGST Act.
 
Hence Composition Scheme is not for GTA
 
Reverse Charge Mechanism under GTA
Bare Law

As per Section 9(3) of CGST Act, The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
 
As per Section 9(4) of CGST Act, The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
 
As per NN 13/2017 Central Tax Rate, Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road to-
(a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the

State Goods and Services Tax Act or the 2 Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
 (e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person.
 located in the taxable territory then Service tax would be paid by Service Recipient.
 
 As per Section 24 of CGST Act, persons who are required to pay tax under reverse charge needs to take mandatory registration.

Interpretation
There are only two sections under which RCM would be applicable, One is related to specified goods and services which will be notified by govt in notification and other is supply by unregistered to registered person.
 
Section 24 mandates registration for persons covered under section 9(3) not 9(4) because 9(4) talks about supply by unregistered to registered person not supply by unregistered to  unregistered person.