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When to pay RCM on GTA (Goods Transport Agency) under GST?

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When to pay RCM on GTA (Goods Transport Agency) under GST?

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by gstdoctor.
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  • #972
    Milan Tiwari
    Participant

    When to pay RCM on GTA (Goods Transport Agency) under GST? And who are all not required to pay.

    #997
    gstdoctor
    Keymaster

    Notification No. 13/2017 – Central Tax (Rate) dated 28/06/2017 clarifies that GST had to be paid under RCM by the recipient at 5% Rate of Tax. And no ITC was allowed to GTA. Although the person who paid the tax under RCM could take ITC.

    Since in this arrangement GTA were not able to take ITC of inputs and capital goods (28%), the goods transport industry representatives requested the government to allow GTA to charge GST on forward charge basis.

    Notification No. 20/2017 – Central Tax (Rate) dated 22/08/2017: Now GTA could opt to pay (this implies forward charge) central tax at 6% (and state tax of 6%) on all the services. And they can take ITC for their inputs and capital goods.

    Several kinds of exemptions are given in case of RCM on GTA such as

    • item based exemption
    • value based exemption
    • entity based exemption

    To read more about this topic, visit RCM on GTA Services.

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