Goods Transport Agency

[VIGNESH]

Sir. Mr.A Registered as GTA and charging 18% tax on his invoice, and he owns 2 Lorry and he has hired another Lorry from Sister Concern and uses it for his Business, and he pay charges for the same. does payment to this hired lorry attracts RCM?

AI Summary

Reverse Charge Mechanism (RCM) under GST not applicable for hiring lorries from sister concerns; falls under forward charge. A discussion on the applicability of the Reverse Charge Mechanism (RCM) under GST for a Goods Transport Agency (GTA) service provider. The main query involves whether hiring a lorry from a sister concern attracts RCM. Responses clarify that the GST rate for GTA services is either 5% or 12%, with no RCM if the lorry is hired from a sister concern as it falls under forward charge. Exemptions are noted under certain notifications. It is emphasized that RCM is not applicable if no consignment note is issued, distinguishing between hiring and GTA services.