GOODS TRANSPORT AGENCY

[VIGNESH]

Sir. Can a GTA follow both Forward charge mechanism And RCM for invoicing.

Means: can he issue some invoices with GST and some without GST, under RCM?

[KASTURI SETHI]

No. Not at all. Hybrid procedure cannot be adopted. Also see my replies in respect of Issue ID no.115475 dated 30.9.19 (at serial no.1 dated 1.10.19, 7 dated 4.10.19 & 8 dated 5.10.19).

[YAGAY and SUN]

Only in such cases where SAC codes are difference on the basis different services are being supplied. e.g. A Service Provide may provide GTA Services as well as CFA Service (inculding some part of GTA Services, otherwise dual mechanism cannot be opted to pay the different rate of Tax under GST Laws.

AI Summary

Hybrid application of forward and reverse charge under GST is not permissible; separate SAC-based services may differ. A Goods Transport Agency cannot adopt a hybrid invoicing approach using both Forward charge and Reverse charge for the same service; dual mechanisms are disallowed. Different tax mechanisms may be applied only where distinct services exist and are classified under different Service Accounting Codes, so that each service's tax treatment follows its SAC-based legal classification.