Reverse Charge mechanism

[MANOHAR KALBURGI]

Dear Sir/Madam

Reverse Charge if the GTA Is Unregistered

Where registered Person under GST takes a services from Unregistered person (GTA) for carrying of goods, does this transaction is governed by section 9(3) or 9(4) of the CGST Act, 2017?

Or

above transaction shall be governed by Notification No. 20/2017-Central Tax (Rate) 22nd August, 2017? where GST liable at 5%/12%.

Or

above transaction shall be governed by notification No. 32/2017 central tax (rate) dt 28th June, 2017 - where only one item is notified i.e promoters and developers for the purpose section 9(4) of the CGST Act, 2017??

Please look into the issue and provide us your valuable opinion.

Thanks in advance

AI Summary

Clarification on Reverse Charge Mechanism for services from unregistered Goods Transport Agencies under CGST Act, section 9(3). A query was raised regarding the applicability of the Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) when a registered person receives services from an unregistered Goods Transport Agency (GTA). The respondent clarified that such transactions fall under section 9(3) of the Central Goods and Services Tax (CGST) Act, 2017, with a GST rate of 5%. It was noted that section 9(4) now only applies to the real estate sector. The applicability of RCM depends on whether the supplier qualifies as a GTA; otherwise, the services may be exempt under Notification No. 12/2017.