TaxTMI 
TaxTMI 
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 ?
GTA under both RCM & FCM Mechanism
21 Aug 2018 
14 Replies 
13102 Views Asked by
Guest 
GTA tax option: choose forward charge to claim input tax credit; hybrid charging not permitted.
GTA services can be supplied under forward charge with input tax credit or under a reduced rate without input tax credit, with the supplier required to opt at the start of the financial year. Both mechanisms cannot be used simultaneously; doing so is a procedural lapse, the taxpayer bears the burden of proof for ITC and tax payment, and penalties may apply. Forward charge is advisable for operational ease and inadvertent one time errors may be treated leniently if no revenue loss is involved. (AI Summary)
GTA services can be supplied under forward charge with input tax credit or under a reduced rate without input tax credit, with the supplier required to opt at the start of the financial year. Both mechanisms cannot be used simultaneously; doing so is a procedural lapse, the taxpayer bears the burden of proof for ITC and tax payment, and penalties may apply. Forward charge is advisable for operational ease and inadvertent one time errors may be treated leniently if no revenue loss is involved. (AI Summary)