The rate of GST on Goods Transport agency services under reverse charge mechanism

[samiuddin ansari]

Sir,

What is rate of GST on Goods Transport Agency services under reverse charge mechanism.milarly, also inform whether security services attracts reverse charge as my friend's firm is a partnership firm engaged in outward supply of frozen fish for export on payment of IGST and thereafter claiming refund of taxes paid on input.

[KASTURI SETHI]

Security Services have been brought under RCM vide Notification No.29/18-CT(R) dated 31.12.18 effective from 1.1.19. GTA under RCM Rate is 5%. See the conditions.

[Ganeshan Kalyani]

The rate is 5%

[sarojni singh]

“reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act;

In exercise of the power conferred by Sec 9(3) & 9(4) of the CGST Act,2017 and Sec 5(3) & 5(4) of the IGST Act,2017 the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Reverse charge – Tax payable by recipient of goods or services or both

AI Summary

Reverse charge mechanism: recipient must pay GST on goods transport agency supplies; security services also fall under notification. Goods Transport Agency services are subject to GST under the reverse charge mechanism with the tax liability placed on the recipient; security services have also been brought within reverse charge by notification. The reverse charge concept places the obligation to pay tax on the recipient, and the Government may notify categories of supplies liable to reverse charge so that all statutory provisions apply to the recipient as the person liable to pay tax.