RCM on Transport services

This query is : Resolved

Nitin Khaire (Querist)
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19 April 2025 If we are an exempted supplier and hire a transport vehicle on a monthly basis without a lorry receipt for this purpose, will Reverse Charge Mechanism (RCM) be applicable?"

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 April 2025 he service of renting a goods transport vehicle (with or without operator) by a GTA is taxable under RCM when the recipient is:
A registered person (even if exempted under GST), or
A government entity, or
A business entity (whether registered or not).

If the service provider is not a GTA (e.g., a normal car rental company), the liability to pay GST is on the supplier (not under RCM).

RCM applies if you are an exempted supplier hiring a goods transport vehicle (with/without operator) from a GTA.