Respected All.
One of My Client Purchasing Goods and Paying GST in FCM Method and While Procuring Goods He is Paying Transport Charges and It is Mentioning in Invoice. Whether it is Composite Supply and Transport Charges Comes Under RCM Mechanism if GTA Opt RCM Method and also If GTA is Unrigistered Whether My Client Has to Pay GST on Transport Service in RCM Mechanism.
As per Notification 13/2017 CT (R) RCM is applicable on GTA Services & Recepient is the person who is liable to pay freight.
And as per GTA definition provided under clause (ze) of Notification 12/2017 CT rate any person who provide services in realation to transport goods by road & issue CONSIGNMENT NOTE (GR) .
So the condition attract RCM :
1. Must be GTA
2. Issue G.R
Now come to your 2nd leg of Query : GTA are not required to be registered unless his services Under RCM (Refer Notification 5/2017 CT) , So even though the GTA is Un-Registered , the prescribed Recepient is liable to do RCM .
GTA Services are not liable to Reverse Charge :
1. Supply to URD individual
2. when GTA pay Tax on FCM @ 12%
3. when provided to Govt ,which has taken registration on for the purpose of deducting TDS.
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