How can a GTA has RCM and FCM both? Can it be via 2 GSTIN of same firm in same city??

[Vibhor Agrawal]

Dear Fellow members,

A unregistered GTA is running business of transportation under tenders with government companies and GST is paid via RCM by Company.

In a new tender GTA wants to register under GST and pay GST under Forward Charge.

What options does GTA has?

Option 1:  According to my understanding GTA can register under GST and ask exisiting Tender companies to transit from RCM to FCM. But the tender companies doest change the RCM to FCM in middle of the existing tender.

Option 2: Can the GTA now apply for 2 separate GST numbers in the same city and keep 1 GSTIN for RCM and another for Forward Charge? If yes, is it legally allowed and can we quote any Notification/ Clarification to the GST department in case of query? Please share the link.

Any other suggestion is highly appreciated. Thank you!

AI Summary

GTA cannot operate under both reverse charge and forward charge mechanisms simultaneously with single registration A goods transport agency (GTA) inquired about operating under both reverse charge mechanism (RCM) and forward charge mechanism (FCM) simultaneously. The GTA currently operates unregistered with GST paid by companies under RCM, but wants to register for new tenders requiring forward charge payment. One expert advised that after July 2022 amendments, GTAs can adopt both procedures under single registration, paying either 5% without input tax credit or 12% with credit under FCM, with proportionate credit reversal required. Another expert clarified that one registration cannot have both RCM and FCM options simultaneously, requiring declaration submission for FCM election.