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Since RCM is differed for Unregistered person but payable on GTA services, Do we have to pay tax on RCM if services taken from unregistered GTA? Please guide.

Since RCM is differed for Unregistered person but payable on GTA services, Do we have to pay tax on RCM if services taken from unregistered GTA? Please guide.

Reply

As per section 9 of CGST Act, 2017, there are two types of supplies which are liable to tax reverse charge mechanism:—

1. As per sub section 3 specified categories (specified category includes a person registered in GST) of supply of goods or services or both as notified by government on recommendations of the council.

2. As per sub section 4 supply of taxable goods or services or both by an unregistered supplier to a registered person. However, the supplies made by unregistered suppliers ta a registered person are exempted till 30.09.2019.

GTA service is covered under section 9(3) of GST law.

Thus, whether GTA is registered or not, if a registered person takes services from a GTA, RCM will applicable

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