RCM on GTA Services

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This query is : Resolved

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If your proprietorship firm, registered under GST, receives transportation services from a GTA and a consignment note is issued, you must pay GST under Reverse Charge Mechanism (RCM). This applies even if the GTA is unregistered. For claiming Input Tax Credit (ITC) on RCM, you must generate a self-invoice within 30 days of service receipt. GST paid under RCM is deductible as an expense in your Income Tax Return (ITR) only in the financial year it is actually paid.

Javed Memon

Javed Memon (Querist)

02 November 2025 Respected Sir

Proprietorship Firm Has paid aggregate amount of rs. 2 Lakh For transportation of goods to GTA

GTA is not registered under GST

So We have To Paid Tax under RCM or Not

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 November 2025 Yes. Under GST law, when services are received from a GTA (whether registered or unregistered), and the recipient (here, the proprietorship firm) is a business entity registered under GST, the recipient is required to pay GST under RCM on the transportation charges if a consignment note is issued by the GTA. The aggregate turnover paid does not affect the applicability of RCM.

Javed Memon

Javed Memon (Querist)

03 November 2025 For F.Y. 2024-25 we have not Paid Tax Uner RCM If We Paid RCM Today on 3rd November, 2025 then Can We ClaimTransportation Expenses in F.Y. 2024-25 ITR And also Claim RCM In GST

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 November 2025 Recent amendments to GST law (as effective from 1st November 2024) specify that for RCM claims, the self-invoice must be generated within 30 days of receiving the goods or services (i.e., in FY 2024-25 for your case), or else you lose the right to claim ITC.

If you pay RCM late (after the 30-day period), you will have to pay interest for the delay, but ITC on RCM can only be claimed if you have paid the tax and complied with the invoicing timelines under the new rule. Late self-invoicing can lead to denial of ITC.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 November 2025 As per section 43B of the Income Tax Act, any tax, duty, cess, or fee payable (including GST under RCM) is allowable as an expense only in the year in which it is actually paid, irrespective of the year in which the liability was incurred. Therefore, the RCM GST amount actually paid in November 2025 will be allowable as a deduction only in the FY 2025-26 return (AY 2026-27), unless paid before the due date of filing ITR for FY 2024-25.

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Javed Memon

Javed Memon (Querist)

04 November 2025 Ok Sir
Thanks For Replies

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 November 2025 You are welcome.

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