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RCM IN GTA SERVICE CIRCULAR

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Bhagyashree Karande

132 Points Posted on 24 May 2021

Hi everypne can you help to find put circular for RCM under GTA service i want to gst know what is tax rate will applied for GTA services....

Replies (2)

Quick Summary

This discussion clarifies the tax rates applicable to GTA (Goods Transport Agency) services under the Reverse Charge Mechanism (RCM). It explains that taxpayers have a choice between RCM and forward charge. If RCM is selected, a 5% tax rate applies, whereas the forward charge option incurs a 12% tax rate.

pankaj

53 Points Posted on 24 May 2021

It's 5 ℅ under RCM or 12℅ under forward charge.
taxpayers has option to choose any one

Bhavika Kothari

1258 Points Posted on 28 May 2021

GTA has an option to choose between Reverse Charge Mechanism (RCM) and forward charge. If you select RCM then 5% tax rate is applicable.
For forward charge 12% tax rate is applicable