A (Registered Taxpayer) entrusted B (GTA) to transport its goods by road from one place to other. B not having enough means of transport entrusted C (GTA) for transport of a part of total goods. C also used the trucks of truck owners who are not GTAs. Now B will raise an invoice on A with RCM.
1. If C will raise invoice on B with RCM?
2. If answer is Yes, GSTR 2A of B will be flooded with entries of C for tax to be paid on RCM. If B is liable to pay GST on RCM for using trucks from C
3. If C shall pay GST (RCM) for using truck owners (unregistered) for transportation?
GST Liability in Goods Transport: A Responsible Under RCM, Subcontracting Exempt from GST for Unregistered Trucks A registered taxpayer, A, hired B, a Goods Transport Agency (GTA), to transport goods by road. B subcontracted part of the transport to C, another GTA, who used trucks from unregistered owners. The discussion revolves around whether C should raise an invoice on B under the Reverse Charge Mechanism (RCM) and whether C should pay GST for using trucks from unregistered owners. Responses clarify that only one consignment note is issued, making the issuer liable for GST. Ultimately, A is responsible for GST under RCM, and hiring trucks for transportation is exempt from GST. The discussion highlights complexities in GST application in the transport sector. (AI Summary)
TaxTMI 
TaxTMI 
