GTA under both RCM & FCM Mechanism

[Prakriti Mish]

What would be the implications if a GTA has billed under both RCM and FCM.?

what would happen with the input taken in FCM ? Do we have to follow FCM ?

AI Summary

GTA Billing Under GST: Choose 12% with ITC or 5% without; Avoid Simultaneous RCM and FCM to Prevent Penalties A discussion on the Goods Transport Agency (GTA) under the Goods and Services Tax (GST) framework explored the implications of billing under both the Reverse Charge Mechanism (RCM) and Forward Charge Mechanism (FCM). Contributors highlighted that GTA service suppliers can opt for a 12% GST rate with input tax credit or a 5% rate without it. It was clarified that opting for both mechanisms simultaneously is not permissible and considered a procedural lapse, potentially attracting penalties. The discussion emphasized that the GST law is still evolving, and such errors might be overlooked if no revenue loss occurs. Participants advised choosing FCM for operational ease.