In RCM, how to determine place of supply ?

[Senthilkumar M]

How to determine the place of supply for paying GTA RCM liability when a service is received from an unregistered GTA by a registered person (company).

Thanks,

Regards,

Senthilkumar

[KALLESHAMURTHY MURTHY K.N.]

 The place of supply is the location of the recipient in case of a registered person /Company / Firm  for payment of tax under RCM as per Sec. 9(3).

[Sadanand Bulbule]

Also refer Entry No.1 of Notification No. 13/2017-Central Tax ( Rate) dated 28/06/2017 for specific details.

[Shilpi Jain]

PoS =  Location of registered recipient

[Senthilkumar M]

Thanks for the reply.

For instance, Unregistered GTA located in Delhi, hired by a person registered in Chennai for Transporting goods from Chennai to Delhi. 

As per my understanding,

the place of supply will be chennai and IGST Applicable. 

Kindly advice.

 

[KALLESHAMURTHY MURTHY K.N.]

The query in Sl. No. 3.1 is not clear.

It is stated that the unregistered GTA located in Delhi is engaged by a registered GTA at Chennai. Then, who pays IGST under RCM? Please elaborate your query with complete information. Otherwise, the answer will be different depending on the understanding of the query, which cannot be assumed about the event.

AI Summary

Place of supply determines RCM liability: location of registered recipient fixes tax treatment, affecting IGST applicability. The place of supply for RCM on services from an unregistered goods transport operator to a registered person is the location of the registered recipient; this determination controls which tax applies and who bears RCM liability. The respondents referenced the controlling statutory provision and a notification entry specific to goods transport agency services. In the example where an unregistered GTA in one jurisdiction is engaged by a registered person in another, the registered recipient's location is treated as the place of supply, with tax consequences (including IGST where inter state treatment follows).