GST under RCM

[Asked by Guest]

I am running GTA , and I am providing trucks to Defence canteens only for their transportation of canteen items from their main depot to their retail out lets. Suppose my bill amount is ₹ 10000 ,So as per RCM the service receiver has to pay GST to Govt. That is defence canteens has to take GST registration and pay the 5% of 10000 as GST for service. So in my view i need not take GST registration as CSD (defence canteens) are paying GST to Govt for the transportation of their canteen items. please clarify my calculation is correct or not and justify please

[DR.MARIAPPAN GOVINDARAJAN]

In this case you are not required to take registration. But GST covers wide area. Therefore you have to look into whether it requires registration under GST for other purposes.

Sir

We are giving / arranging trucks to defence canteens only. we are not giving trucks to local parties or to individuals etc.whatever may be the amount the liability of paying service tax is with the respective canteens only as per RCM.Then what is the necessity of taking GST registration ,Please clarify

[DR.MARIAPPAN GOVINDARAJAN]

If it is so no registration under GST is required.

AI Summary

Reverse Charge Mechanism places GST payment on service recipients, so exclusive GTA supplies to canteens may not require supplier registration.
Reverse Charge Mechanism applies to GTA services supplied to defence canteens, placing the GST payment obligation on the service recipients; if the GTA supplies trucks exclusively to those canteens and the canteens discharge the GST under RCM, the GTA need not obtain GST registration for those supplies, subject to assessment of any other activities or turnover that may independently mandate registration.