Inter GTA Services

[Bayyareddy DK]

Sir,

My client is a GTA agent. He is getting orders from another GTA service provider as sub contract/ whole contract. Is this Inter GTA services allowed in the same line of business. Please Advice.

AI Summary

Clarification on GST: Can One GTA Agent Invoice Another? Understand RCM, Tax Rates, and Transaction Structuring. A client, a Goods Transport Agency (GTA) agent, receives orders from another GTA agent as a subcontract. The query seeks clarification on whether one GTA agent can invoice another and if the receiving agent must pay Reverse Charge Mechanism (RCM) on these invoices. Responses clarify that the agent issuing the consignment note is recognized as a GTA. The primary agent can choose between paying GST at 12% with Input Tax Credit (ITC) or 5% without ITC, while the subcontractor's services are taxed at 18%. Alternatively, structuring the transaction as vehicle hire can exempt it from GST. Proper classification and tax payment under the correct SAC/HSN are emphasized.