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

Clarification on GST rates for Goods Transport Agency: 5% under RCM if GTA doesn't charge, 12% with forward charge. A query was raised regarding the applicable Goods and Services Tax (GST) rate under the Reverse Charge Mechanism (RCM) for services procured from a Goods Transport Agency (GTA). The discussion clarified that if the GTA does not charge GST, the recipient should pay 5% GST under RCM. If the GTA charges GST, the rate is 12% under the forward charge. It was confirmed by multiple contributors that there is no 18% GST rate applicable for GTA services.