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.
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..
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??
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??