WHEN GTA CAN OPT FOR FCM UNDER GST

[KULDEEPSINGH KHANGAROT]

Dear Sir, My one of client is a registered GTA , but even though it was registered we were raising Transport Services Invoices on Reverse charge , and on sale of old vehicles we were raising Invoices on forward charge.

Now, from 01.09.2018, my client wants to raise all the Invoices on Forward charge basis and also , want to take credit of Inputs of the same. SO, can he opt from middle of year the option of migrating from RCM to FCM?

[Praveen Nair]

If the GTA wants to pay GST then as per Notification No. 20/2017-Central Tax (Rate) 22nd August 2017, he can opt for:

1. 12% GST with ITC
2. 5% GST with No ITC

Provided the GTA has opted for the same at the beginning of the Financial year.

[DR.MARIAPPAN GOVINDARAJAN]

3)	(4)	(5)
“(iii) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use). Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.	2.5	Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]
	or
	6	Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.”;

In this notification the time of option to be exercised is not mentioned. Elsewhere it is provided that the option is given in the beginning of the financial year?

AI Summary

GTA option for forward charge allows choice of GST with input tax credit or without, subject to annual opt in timing. The tariff permits a goods transport agency to elect between charging GST with entitlement to input tax credit or charging a lower rate without credit, but the election must be made at the beginning of the financial year; the notification text quoted does not itself specify timing, and related provisions indicate the option is an annual opt in, preventing mid year migration from reverse charge to forward charge unless a transitional provision applies.