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?

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.