Applicability of RCM IGST or CGST/SGST

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This discussion clarifies the applicability of Reverse Charge Mechanism (RCM) for IGST or CGST/SGST on goods purchased from a registered dealer in another state. If the transporter is not registered but acts as a Goods Transport Agency (GTA), the recipient in Chennai will need to pay tax under RCM. The specific tax (IGST or CGST/SGST) depends on whether the transaction is considered interstate or local, though for interstate purchases, IGST is generally applicable.

Sathish Kumar.J

Sathish Kumar.J (Querist)
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06 January 2023 I am registered person under GST in Chennai . I purchase Goods from a registered dealer in Kerala. The goods are moved from Kerala to Chennai thru a Transporter ,who is not registered. He issues a slip containing the consignor and consignee details along with goods description. My question is
1. Can i consider him as a GTA
2. If he is a GTA then, do need to pay tax under RCM as IGST or CGST/SGST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2023 1. Yes, he is GTA.
2. Yes, depending based upon the invoice issued by GTA, whether local or interstate.

Sathish Kumar.J

Sathish Kumar.J (Querist)
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06 January 2023 It is a interstate purchase and GTA will not issue invoice. He will just give a note with all details. In this situation do need to pay IGST or CGST/SGST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2023 Who paid transportation charges? ...

Sathish Kumar.J

Sathish Kumar.J (Querist)
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06 January 2023 Chennai party, will pay RCM

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