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

[KASTURI SETHI]

The place of supply is the location of consignor as it is covered under Section 12(8)(a) of the IGST Act, 2017

In terms of Section 12(8) of the IGST Act, 2017, the place of supply of services by way of transportation of goods, including by mail or courier to -

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

GTA has provided service to a registered person (Consignor).

AI Summary

GTA tax option: choose forward charge with input tax credit or reverse charge, shaping registration and compliance obligations.
GTA services must be supplied either under the forward charge mechanism with input tax credit or under the reverse charge mechanism without input tax credit, by filing an option at the start of the financial year; once chosen the mechanism applies to all GTA supplies for that year. Exemption thresholds for small-value consignments are applied from the GTA perspective under FCM, while service recipients under RCM may lack aggregation data and must often discharge tax on a precautionary basis. Place of supply rules fix location at the recipient for registered persons and at handover point for unregistered persons.