Professional
289 Points
Joined July 2015
According to section 9 (3) The Government may specify categories of supply of goods or services or both, the tax on which shall be paid on the reverse charge basis by the recipient of such goods or services or both and GTA is one of the services.Read more at: /articles/reverse-charge-mechanism-under-gst-30090.asp
Transportation service provided by a GTA to a registered persons, casual taxable person, Factory, Society, Co-operative Societies, any Body Corporate, partnership firm or an AOP are covered under Reverse Charge Mechanism and tax has to be paid by the recipient of supply.
In short only local authority and central/state govt are excluded.Hence liability to pay GST by GTA shall arise only when GTA is providing services to local authority and central/state govt in all other cases GST shall be paid by recipient.Also even if Factory, Society, Co-operative Societies, any Body Corporate, partnership firm or an AOP are unregistered under GST law due to any reason they have to still pay GST on gta services under rcm as per sec 9(3).
Now If GTA is unregistered and providing services to unregistered person then there will be no implication of GST..i.e.no liability of GST shall arise as rcm under sec 9(4) is only applicable when supply is made by unregistered person to registered person.
Alternatively GTA can get themselves registered and file nil return also there is no problem in that...
Having said that there is still hue and cry on this issue and whatever I have stated is my personal analysis and opinion.