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

Reverse charge on goods transport agency services: exemption for such services prevents recipient liability under the reverse charge mechanism.
Where goods transport agency services are themselves exempt under the rate notification, that exemption means no tax is payable by the recipient under the reverse charge mechanism; the exemption depends on the nature of the service and the status of the provider as a GTA, not on the recipient's status.