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GTA (FCM or RCM)

27 January 2019

If GTA opts to pay tax @ 12%.
Always tax will be payable by GTA?

(even in case of specified recipients where RCM must apply?)

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10 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 January 2019

As per notification 22/2018 CT (r) , yes GTA can charge 12 % under forward charge & no RCM is applicable , the recipient can claim ITC

1 Like

Vedant Khanna (374 Points)
Replied 27 January 2019

So if a GTA who had opted at the beginning of the year to pay GST @ 12% under forward charge

If he supplies taxable goods to a partnership firm,
the firm will have to pay GST @ 5% under RCM?

Anshuman Basu (account -GST) (1549 Points)
Replied 27 January 2019

yes sir, but one question is if GTA charge forward charge along with RCM together in his invoice at a time in particular financial year ?

Vedant Khanna (374 Points)
Replied 27 January 2019

No i think if GTA has opted 12% once at the beginning he must collect GST under forward charge from every recipient, as confirmed by pankaj sir above.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 January 2019

@ vedant Khanna

The firm is not required to do RCM neither has pay 5%GST , infact the firm can claim ITC

@ Amshuman
No the GTA cannot carry with both scheme of charging 12% & 5%, & has to opt any one in the beginning of fy year

1 Like

Vedant Khanna (374 Points)
Replied 27 January 2019

Thanks alot sir 😊

Anshuman Basu (account -GST) (1549 Points)
Replied 27 January 2019

it means From beginning of the year GTA service provider should decide whether he charge GST in his bill or Not..... sir may I right?

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 January 2019

yes correct dear

Vedant Khanna (374 Points)
Replied 27 January 2019

Sir this is the last doubt remaning in my mind.

If GTA opts GST @ 5% in the beginning
and supplies goods to a Non resident Taxable person, will Forward charge be applicable?
(Since NRTP is not covered under specified recipients)

So will the GTA have to collect GST @ 5% from NRTP in such a case?