Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

RCM Gst registration

P MURUGAN (ACCOUNTANT) (204 Points)

12 June 2025

An Asseesee whose turnover is below Rs 40,00,000 lakhs ( dealing taxable goods, further not a factory, not a firm, not a company), and now he receive the service of GTA, in this circumstanes is that assessee is liable to take compulsory GST registration under section 24?

Reply
Follow
Share

1 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8156 Points)
Replied 12 June 2025

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.