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)

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)

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)

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)

06 January 2023 Who paid transportation charges? ...

Sathish Kumar.J

Sathish Kumar.J (Querist)

06 January 2023 Chennai party, will pay RCM

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