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GTA- RCM

22 December 2018

What is the differnce of charging differnt tax rates by GTAs like 5%,12% and some others are not even charging tax and how this effect on RCM? and can we claim input for this 5% & 12%?

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2 Replies

pritesh (CA Final student) (7101 Points)
Replied 22 December 2018

5% is with out ITC and 12% is with ITC
if they don't charge gst then recipient of service has to pay under RCM

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 22 December 2018

Goods Transport Agency has following Three Options or we may say three situations :

1. Providing Services to Specified Category Recipient – Applicability of Reverse Charge as per Notification No. 13/2017- Central Tax (Rate) Dt : 28.06.2017 (GTA do not charge any GST)

2. Services to other than Specified Category Recipient – Forward Charge @ 5% without ITC – Rate of GST as per Notification No. 11/2017-Central Tax (Rate) Dt : 28th June, 2017

3. Forward Charging with ITC Availment – Forward Charge @ 12% availing ITC – Notification No. 20/2017 – Central Tax (Rate) dated 22ndAugust, 2017