RCM Rate on GTA Services

 RCM Applicability As per the GST Council's notifications, RCM (Reverse Charge Mechanism) is applicable to GTA services provided by:

1. _Unregistered persons_: When the transporter is an unregistered person (e.g., a proprietor concern).

2. _Registered persons_: When the transporter is a registered person, but the recipient is a registered person under RCM. GST Rate and ITC Now, addressing your questions:

*Scenario 1: 5% GST under RCM* 1. _GST Rate_: 5% GST is applicable under RCM. 2. _ITC Eligibility_: Yes, you can take ITC (Input Tax Credit) of the GST paid under RCM.

*Scenario 2: 12% GST* 1. _GST Rate_: 12% GST is applicable when the transporter is a registered person and the recipient is not under RCM.

12. _ITC Eligibility_: Yes, you can take ITC of the GST paid. Difference in Recipient Type (Company or Partnership Firm) The GST implications remain the same whether the GTA services are received by: 

1. _A Company_: A private or public limited company.

2. _A Partnership Firm_: A partnership firm registered under the Partnership Act, 1932. 

In both cases, the RCM applicability, GST rate, and ITC eligibility remain the same.

Under RCM for GTA services, the rate depends on which option the GTA has chosen. If the GTA has not opted for forward charge (via Annexure V), the recipient pays GST at 5% under RCM and cannot claim ITC on it. If the GTA opted for forward charge and chose the 18% with full ITC route, the GTA pays the tax and you can claim ITC. The old 12% with ITC under RCM option was removed from September 22, 2025. This [GTA GST guide](https://taxgarden.in/blog/gst-on-goods-transport-agency-gta-rcm-forward-charge-india-2026) explains the rate matrix, who pays under each scenario, and how to report it in Table 3.1(d) of GSTR-3B.