GTA there is a two concepts are there, one is RCM if service providers unregister. we need to pay 5% on GTA road. another one is FCM, option of service provider if register. Under FCM method service provider charge GST 12% on service invoice.
Reverse charge mechanism & Forward charge mechanism method available on GTA.
If GTA provider is registered and claiming Input credot then 12% will be charged by him and no RCM applicable. Receiver can avail input credit of same.
If GTA provider is registered and not claiming Input credit, Then if receiver is registered under GST,or company or factpry or others specified in RCM notification then GST @ 5% is liable under RCM. If receiver doesnt fall under any of above categories then GST @ 5% would be charged by vendor himself in invoice.
If GTA is unregistered, then servicer falls under amy of specified persons for which RCM is applicable, then RCM @ 5% is to be paid otherwise no.
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