GTA (FCM & RCM) service in same GSTN registration with multiple business segment

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(Querist)
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08 August 2025 Hello sir,
We are in multiple business line in one GSTN. now we are entering in GTA business. can we raise invoice in same GSTN or we have to take Seprate GST registarion of GTA.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 August 2025 You do not need a separate GST registration for the GTA business if it is carried on within the same state under the same PAN.
You can:
Use your existing GSTIN,
Add GTA as an additional business activity on the GST portal,
And raise invoices for GTA services using the same GSTIN.

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Jayraj Solanki

Jayraj Solanki

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11 August 2025 Thanks rambhai for your kind suggest. Can I issue invoice As FCM or RCM ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 August 2025 A GTA has two primary options for paying GST under the forward charge mechanism, and there is also a reverse charge mechanism that applies in specific cases.

1. Forward Charge Mechanism (FCM)
A GTA can opt to pay GST themselves under the forward charge mechanism. This option must be exercised at the beginning of the financial year. Under FCM, a GTA has a choice between two rates:

5% GST (without ITC): The GTA charges 5% GST on the transportation service but cannot claim any Input Tax Credit on their own expenses (like fuel, vehicle maintenance, etc.).

12% GST (with ITC): The GTA charges 12% GST and can claim Input Tax Credit on all eligible inputs and services. This option is often chosen by GTAs with significant input costs.

2. Reverse Charge Mechanism (RCM)
If a GTA does not opt to pay tax under the forward charge mechanism, the reverse charge mechanism automatically applies. In this case, the recipient of the GTA service is responsible for paying GST at a rate of 5%. The GTA is not eligible for Input Tax Credit in this scenario.

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