RCM Gst registration

Compulsory GST Registration under Section 24 According to Section 24 of the CGST Act, certain categories of persons are required to obtain GST registration compulsorily, regardless of their turnover. One such category is: -

 *Recipients of services from a Goods Transport Agency (GTA)*: If a person receives services from a GTA and the aggregate turnover exceeds the threshold limit, they are not necessarily required to register.

However, if the recipient is liable to pay GST under reverse charge mechanism (RCM) for GTA services, and they are not already registered, they would need to register.

 Liability for GST Registration In your scenario, the assessee has a turnover below Rs. 40 lakhs and is dealing in taxable goods. They are not a factory, firm, or company. If they receive services from a GTA, they would be liable to pay GST under RCM. Compulsory Registration Threshold For GTA services, the recipient would need to consider the following: -

 *Aggregate Turnover Threshold*: If the aggregate turnover is below the threshold limit (Rs. 40 lakhs for special category states and Rs. 20 lakhs for other states, with some exceptions), they are not required to register unless they fall under the compulsory registration categories. -

*Reverse Charge Mechanism (RCM)*: As a recipient of GTA services, they would be liable to pay GST under RCM.

In this case, they would need to register for GST if they are not already registered. 

Conclusion Given the specifics, if the assessee is receiving GTA services and is liable to pay GST under RCM, they would need to obtain GST registration, regardless of their turnover being below the threshold limit.

Yes, GST registration is mandatory if you are paying tax under Reverse Charge Mechanism, regardless of your turnover.

Section 24(iii) of the CGST Act lists compulsory registration triggers. Persons who are required to pay tax under reverse charge are on that list, with no turnover threshold exemption.

This means: if you receive any services notified under RCM (Goods Transport Agency services, legal services from advocates, security guard services, etc.) and you are the recipient paying GST on behalf of the supplier, you must register.

Two additional points on RCM that often catch businesses off guard:

RCM tax must be paid in CASH: You cannot use your Input Tax Credit balance to discharge RCM liability. Pay RCM tax in cash through GSTR-3B Table 3.1(d) and then claim the ITC in Table 4 in the same return.

ITC eligibility: The RCM tax you pay is available as ITC in the same month, subject to the standard ITC conditions. It is not a permanent cost.

For the full list of RCM-notified services, the compliance calendar, and how to report RCM correctly in GSTR-1 and GSTR-3B, this [RCM guide](https://taxgarden.in/blog/reverse-charge-mechanism-rcm-gst-india-guide) covers the current FY 2026-27 position.