FCM & RCM in Transport Business

[Karthik Manoharan]

Dear Sir,

With ref to the above subject, i doing a transportation business and having a GST registration Number.

Hence, i want to know about the RCM & FCM in GST

So, Kindly do the needful.

With Regards

Karthik M

AI Summary

Understanding Forward and Reverse Charge Mechanisms in GST for Goods Transport Agencies: Key Rules and Registration Requirements A transportation business owner inquires about Forward Charge Mechanism (FCM) and Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST). Forum participants advise consulting the GST Act for specific queries and suggest consulting a tax expert for complex issues. It is clarified that a Goods Transport Agency (GTA) cannot mix FCM and RCM for different clients within the same financial year. The discussion also covers the conditions under which a GTA must register for GST, the implications of choosing 12% GST with input tax credit (ITC) versus 5% without ITC, and the exemptions for small consignments. The place of supply for GST purposes is determined by the location of the consignor.