Option for GTA Services in GST

[JIGAR SHAH]

Our client providing GTA services. In current GTA service provider have three option to charge GST. 1.) Reverse Charge 2.) @5% without ITC & 3.) @12% with ITC. Can we excise both option 1 & 3 parallel(i.e partly sales with reverse charge & partly sales @ 12% with ITC).

AI Summary

GST Advisory: GTA Services Must Choose Between RCM and FCM for the Entire Financial Year; Hybrid Approach Not Permitted. A discussion on Goods and Services Tax (GST) options for Goods Transport Agency (GTA) services addressed whether a service provider can simultaneously use both reverse charge mechanism (RCM) and forward charge mechanism (FCM) with different tax rates. Experts advised against this, emphasizing that a service provider must choose one method for the entire financial year, as hybrid procedures are not allowed. It was noted that opting for different methods could lead to audit issues and irregularities. Participants referenced specific notifications to support their advice and highlighted the importance of consistency in tax application.