Question

GTA working under RCM can opt Forward Charge Machanism at nay time during the year or only at the beginning of the financial year.

Answer

In case of GTA Law is silent regarding when GTA can opt for forward charge whether at the beginning of the year or at any time during the year.

However as per Notification no. 11/2017- Central Tax (Rate) s.no. 9(iii) specifies a condition that GTA opting to pay central tax @ 6% under this entry shall , henceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it. It implies that once GTA has opted for Forward charge to pay GST @ 12%, then he cannot opt for other options and is liable to pay GST @ 12% on all services supplied by it.

From the above provision it seems that you can opt for Forward charge any time during the Financial year. But once opted you cannot withdraw from that during that Financial year.

If he opts to pay 5% from any Financial year the ITC already taken on Capital goods will required to be reversed. Although it is not specifically mentioned in Section 18.(Reply dt. 23/08/2018)