RCM Rate on GTA Services

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42 Points Joined October 2024

Hello Sir

A Company is receiving GTA Services from a transporter services (Proprietor concern)

i).Can we pay at 5% GST on this service under RCM and can we take ITC

ii).if we pay 12% Can we take ITC

Also request you to advise would be it be different if the GTA services are recieved by a company or Partnership firm

Thanks

 

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On 15 January 2025 at 11:57 Report
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Master in Accounts & high court Advocate
9142 Points Joined December 2011

 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.

 

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On 15 January 2025 at 14:46


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