RCM on GTA

[Bharat Cholleti]

Greetings of the day!!!

RTP is running a Rice Mill procure paddy and rice from different parts of the country has paid the transport charges to the GTA, These services are exempted in the hands of GTA as per NNo.12/2017 CTR dt; 28-6-2017 as per Serial No.21(d) milk,salt and food grain including flour,pulses and rice but in NNO.13/2017 CTR dt; 28-6-2017 GTA services is taxable under RCM since the goods are exempted does rcm also exempted in the hands of recipient rice miller or irrespective of the taxability or exemption of the goods are they liable to pay rcm on such services as per NNo.13/2017 CTR dt; 28-6-2017. please clarify, thanks in advance.

AI Summary

Rice Mill Not Liable for GST on GTA Services if Exempted by Notification No. 12/2017; Reverse Charge Mechanism Explained. A discussion on a forum addressed whether a rice mill, which procures paddy and rice and pays transport charges to a Goods Transport Agency (GTA), is liable to pay GST under the Reverse Charge Mechanism (RCM). The query referenced Notification No. 12/2017, which exempts certain GTA services, and Notification No. 13/2017, which subjects GTA services to RCM. Respondents agreed that if GTA services are exempt under Notification No. 12/2017, the rice mill is not liable to pay GST under RCM, as the exemption applies to the service itself, not the recipient.