RCM payable without GTA ?

[husen kadwalwala]

Dear sir,

we sell our product FOR to our client companies. for transport we use direct vehicles without the GTA. distance to destination very from 1000-1200 KM. is GTA needed after certain distance ? do we need to pay the RCM for the transport fright ?

Regards

AI Summary

Reverse Charge Mechanism under GST not applicable for direct vehicle transport without Goods Transport Agency involvement. A query was raised regarding the applicability of Reverse Charge Mechanism (RCM) under GST for transporting goods using direct vehicles without engaging a Goods Transport Agency (GTA). It was clarified that the use of GTA is not mandatory based on distance, and RCM does not apply if GTA services are not used. No specific declaration is required under GST law for using direct vehicles, but accounting records should support the position in case of inquiries. It was noted that GTA is taxable, and declarations are needed only when opting for GST under Forward Charge Mechanism (FCM) or reverting under RCM.