Goods and Transportation Agency(RCM)

[Ethirajan Parthasarathy]

A GTA from Mumbai, transports goods to Bengaluru, Karnataka. GTA in Mumbai is not registered. They do not raise any Invoice.

Their office in Bengaluru is registered unde GST and they raise Invoice indicating CGST and SGST. The Bangaluru branch has uploaded the invoice details and same is auto populated in GSTR 2A of the consignee.

The consignee pays only IGST as RCM Tax ignoring CGST and SGST reported by the Bangaluru office.

Please confirm what is done by the consignee is in accordance with law.

AI Summary

Place of supply rules may make the termination location determine CGST/SGST liability rather than IGST under reverse charge.
A consignee received goods transported by a GTA whose Bengaluru branch issued invoices with CGST and SGST; some respondents invoke the place-of-supply rule that the movement's termination point (Bengaluru) makes intrastate tax appropriate, while others raise fixed-establishment and service-versus-goods concerns and debate whether IGST under reverse charge is proper and how ITC and valuation are affected.