REGARDING INPUT

This discussion clarifies Goods and Services Tax (GST) Reverse Charge Mechanism (RCM) for a cotton manufacturer receiving transport services. It addresses whether RCM applies when services are received from unregistered dealers (URD) and differentiates this from services received from registered dealers (RD). The advice indicates RCM liability generally applies if the transporter is a Goods Transport Agency (GTA), regardless of their registration status, and that this should be noted on the invoice.