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RCM of Legal Services

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Niru Kumar

23 Points Posted on 25 February 2022

ADVOCATE provided services to GTA who is providing services on RCM. Des GTA need to get registered?

Replies (4)

Quick Summary

This discussion clarifies whether a Goods Transport Agency (GTA) providing services under the Reverse Charge Mechanism (RCM) needs to register for GST when receiving legal services also subject to RCM. Generally, GTAs exclusively making RCM supplies are exempt from GST registration. However, receiving taxable legal services necessitates understanding GST implications and potential TDS requirements.

Ashok kumar

CA Final

592 Points Posted on 25 February 2022

There was a lot of confusion about whether a GTA has to register under GST. As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is engaged in making only supplies of taxable goods/services on which Reverse Charge Mechanism (RCM) applies is exempted from obtaining registration under GST.

Thus, a GTA does not have to register under GST if he is exclusively transporting goods where the total tax is required to be paid by the recipient under reverse charge basis (even if the turnover exceeds the threshold limit).

Niru Kumar

23 Points Posted on 28 February 2022

But my question is GTA is providing services on RCM basis does he is not registered & this month he has received Legal Services from an Advocate which is also to be payable on RCM basis, so does he needs to get registered & pay Gst of Legal services.?