RCM & FCM METHOD FOR TRANSPORTER

[MANAV KEDIA]

CAN A TRANSPORTER REGISTERED IN DIFFERENT STATES OPT FOR FCM IN ONE STATE AND RCM IN ANOTHER STATE and WHAT WILL BE THE PROCEDURE TO TAKE INPUT TAX CREDIT ?

[Ganeshan Kalyani]

The service provider is exempted from taking registration if the service provided by him is covered under reverse charge notification. However, on voluntary basis you can take registration and comply But in my view it is not allowed that you pay tax under forward charge in one state and pay tax under RCM in another.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji.

AI Summary

Transporter Cannot Opt for Forward Charge in One State and Reverse Charge in Another Under GST Rules A transporter registered in different states inquires about the possibility of opting for Forward Charge Mechanism (FCM) in one state and Reverse Charge Mechanism (RCM) in another, and the procedure for input tax credit under GST. One response clarifies that while a service provider can voluntarily register even if covered under reverse charge notification, it is not permissible to pay tax under FCM in one state and RCM in another. Another respondent agrees with this interpretation.