A Goods Transport Agency (GTA) operating under Forward Charge Mechanism (FCM) paying 12% GST inquired about paying GST on hiring goods from unregistered persons under Reverse Charge Mechanism (RCM). The response clarifies that hiring of goods transportation vehicles by a GTA is exempt from GST, meaning no additional GST needs to be paid under RCM in this scenario.
22 August 2024
Sir, I have Business of GTA (Goods Transports Agency) under FCM and Paying GST @12%. But now I'm hiring goods from unregistered persons to provide GTA service. Hence I want to know, Should I need to pay GST on that hiring amount under RCM, If Yes then what is the rate of GST.