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 GST treatment: ability to use reverse charge and forward charge on different contracts without separate GST registrations.
Practitioners advise that after the 18 July 2022 amendment a GTA may elect FCM and choose either a reduced rate without ITC (necessitating proportionate ITC reversal) or standard rate with ITC; many practitioners also state a single GST registration can be used to invoice some contracts under RCM (recipient pays tax) and other contracts under FCM (GTA charges tax), so obtaining two GSTINs in the same location is not required, although one respondent contends the FCM opt-in declaration precludes combining RCM and FCM in the same registration.