GTA Annexure V Non Compliance

The GTA has fulfilled the substantive requirement (payment of tax). While failure to file Annexure V is a procedural violation, it is unlikely to sustain a demand for RCM from recipients or a denial of ITC for the GTA, as this would result in unjust enrichment of the government. The best approach is proactive disclosure to the jurisdictional officer to rectify the procedural record, supported by documentation showing the tax was correctly collected and deposited.

This is a significant issue and the expert advice on proactive disclosure is correct.

To be specific about what happened: under Notification 11/2017-CTR (as amended), a GTA that wants to pay GST under forward charge must file Annexure V before the start of the financial year. Since this was not done before April 1, 2026, the notification treats all supplies for FY 2026-27 as RCM by default ,  regardless of the fact that the GTA collected and paid GST on forward charge.

This creates two problems:
1. Your recipients claimed ITC on forward-charge invoices. If the department takes the position that RCM applied, those ITC claims are invalid and recipients may get notices for reversal plus interest.
2. The GST you collected and paid as forward-charge tax may need reconciliation ,  the department may ask why no RCM payment is showing in your recipient accounts.

Proactive disclosure to the jurisdictional GSTIN officer is the right first step. The letter should explain the genuine oversight, attach all GST-3B challan proof showing tax was duly paid, and request clarification on the treatment going forward.

This is not a situation to navigate alone ,  the inter-locking impact on client ITC and potential interest demands makes it a CA engagement. The [GST notice and demand response guide](https://taxgarden.in/blog/gst-drc-01-show-cause-notice-reply-drc-06-guide-india-2026) covers the formal disclosure and DRC-06 path if a SCN is eventually issued.