RCM on registered GTA

[kaushal jaishwal]

Dear sir/mam

we are a pvt ltd. co. , if a registered GTA providing GTA service and no GST have been charged in bill but it is already registered in GST.

please advise whether the company is still liable under RCM to pay GST on registered GTA' bill if they are not charging GST on thier bill.

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 1 of Notification No. 13/2017=Central Tax (Rate) dated 28.6.2017 as amended "

Supply of Services by a goods transport agency (GTA)who has not paid central tax at the rate of 6% 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 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.

the gst is payable under RCM by the recipient of the service.

[Nash Industries I Pvt Ltd]

RCM is applicable if and only if the GTA has not paid the tax on Forward Charge.

Regards

S.Ramaswamy

[YAGAY andSUN]

It is then if the GTA has not availed the ITC.

[KASTURI SETHI]

I support the views of all experts.

AI Summary

Reverse Charge Mechanism applies where a GTA has not paid tax, obliging the recipient to pay GST under the notification. Reverse charge applies where a goods transport agency has not paid central tax on transportation services; in that event the recipient-including registered persons, bodies corporate, partnership firms, societies, co operative societies and casual taxable persons-must pay GST under the reverse charge mechanism. Experts clarify that RCM is triggered only if the GTA has not discharged tax on a forward charge basis or has not availed input tax credit.