Can a Businessman do GTA Business under RCM with another trading business with FCM

This query is : Resolved

Vijay Dakhvani (Querist)
Follow

15 February 2024 Hello Experts !!
one of my client have 4 trucks and he is providing service of goods transportation and he is not register in GST till date .
Now he wants to start another business of trading for which he will have need of a truck for supplying the trading goods. so he is will buy another truck for the trading work activity.
he will be liable for GST registration and he will buy that new truck and will take ITC of GST as capital goods .

now we have 2 businesses with single GST registration and we will operate those businesses under GST as per below :

1. GTA Business : Under RCM
2. Trading Business : Under FCM (we will take whole ITC of new truck as per rule 43 and reverse the monthly ITC in the proportionate of supply (sales) under RCM (exempt ) and FCM.

Please suggest me ,is this practice good or as per GST provisions ?
If any problem will occur in near future , than please let me know.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

16 February 2024 No problem will occur in future.

Message likes : 1 times

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

17 February 2024 I think you will charge freight from your buyer alongwith Sale value of goods...then i think there is no question of RCM in trading business

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now