GST REGISTRATION REQUIRED OR NOT

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This discussion clarifies whether a partnership firm operating a commission-based roadways business requires GST registration. Initially, it was questioned if the commission model fell under Reverse Charge Mechanism (RCM). However, it was confirmed that if the business is classified as a Goods Transport Agency (GTA), RCM applies, meaning no GST registration is necessary, even if turnover exceeds the usual thresholds like 20 or 40 lakhs.

Teerth

Teerth (Querist)

03 March 2020 Does the Partnership Firm having Roadways Business running totally based on commission is required to get GST Registration??
The Business running on Commission is covered under RCM.. Also the Firm doesn't own any vehicles in its own name.. They only provide the services on commission basis..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 March 2020 Such commission business is not covered under RCM. So registration is required if business exceed threshold of 20 lacs.

Teerth

Teerth (Querist)

04 March 2020 Respected Sir CA R Seetharaman,
With due respect sir the Business is classified under GTA.. So wouldn't it be covered under RCM?? Please clarify my concept if I am wrong??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 March 2020 If it's GTA then I agree with you RCM applicable and no GST registration is required.

Teerth

Teerth (Querist)

04 March 2020 Respected Sir,
With respect so that means that even if the Turnover is more than Rs 40 Lacs still No GST Registration is required in case of GTA??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 March 2020 Yes you right no registration is required in case of GTA turnover more than 40 lacs.

Teerth

Teerth (Querist)

19 March 2020 Thank you so much for your response CA R SEETHARAMAN sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2020 Welcome..............

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