Who is obliged to pay

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This discussion clarifies GST obligations for Goods Transport Agency (GTA) services in India. The recipient of the service, typically the one to whom the transporter issues the invoice, is liable for GST under the Reverse Charge Mechanism (RCM). In this scenario, 'A' in Gujarat is identified as the recipient, making them responsible for paying GST and eligible for Input Tax Credit (ITC). Payments made by a Head Office in Maharashtra are considered internal settlements and do not alter the primary GST liability. The discussion also confirms that the ISD mechanism is not applicable for distributing RCM ITC in such GTA transactions.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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22 December 2025 " A" in Gujrat send goods to "B" through transporter
Transporter is in Gujrat. Transporter raised his bill in the name of " A". Both A & B & H. O. In Maharashtra are distinct person.
Transporter payment made by H. O. In Maharashtra.
1 )who is recipient of service - who make payment of freight, or goods handed over to " B", or who send goods by transport i. e " A"
2)Is want to raise invoice to ISD for Distributing ITC
3 ) Please Guide.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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24 December 2025 In GTA transactions, the recipient of service is the person to whom the transporter issues the invoice, not the person who makes payment or receives the goods. In your case, A (Gujarat) is the recipient, hence liable to pay GST under RCM and eligible for ITC. The invoice must not be raised to HO or ISD, and RCM ITC cannot be distributed through ISD. Any payment by HO is only an internal cost settlement and does not change GST liability.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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25 December 2025 But sir, is GTA service attributable to distinct person, then is ISD mechanism🙏applicable.

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