RCM GST rate

[Nisha Prabhu]

At what rate RCM need to be paid in case of services procured by a company GTA services. Invoice provided by the GTA is at 5%. Whether RCM need to be paid at 18% or 5%

[Prudhvi Jakkula]

Dear sir/madam,

GST on GTA is to be paid at 5% by recipient in case if GTA service provider not charged any GST.

Simply

GST on GTA = 12% (charged by GTA, forward charge)

GST on GTA = 5%(By recipient through RCM)

There is no 18% in GTA.

[KASTURI SETHI]

I support the views of Sh.Prudhvi Jakkula Ji.

[Ganeshan Kalyani]

Yes, GST@5% or 12% is applicable on GTA and not 18% or 28%.

AI Summary

Reverse charge mechanism applies to goods transport agency services, requiring recipient to pay the notified reduced GST rate.
Where a GTA does not charge GST, the recipient must pay GST under the reverse charge mechanism at the notified reduced rate; suppliers may alternatively charge GST under forward charge. The discussants emphasise that higher standard GST slabs mentioned in the query do not apply to GTA services in this exchange.