Question

Kindly provide your expert opinion regarding the following situations:-
Payment of GST under reverse charge mechanism for GTA service,
Our office is located in Agra

(i) when transport agency is registered in Kolkata (West Bengal), our imported goods are hand over to GTA and goods are delivered in our Agra office, where payment of freight is made to transporter. Kindly confirm whether IGST would be paid or CGST SGST?
(ii) when transport agency is registered in Agra and our goods delivered to consignee at Dholpur (Rajasthan) and Freight is paid by us to GTA in Agra. Kindly confirm whether IGST would be paid or CGST SGST?
Your expert comment is awaited.
It is further requested that if any clarification has been issued on this aspect same may also be informed.
 

Answer

Facts of the case:
1. GTA registered in Kolkata providing service under RCM to person registered in Agra.
2. GTA registered in Agra providing service under RCM to person registered in Agra but goods are delivered at Rajasthan.
Whether to charge CGST and SGST or IGST?

Law Applicable:
(i) Section 9(3) of CGST Act:-
(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.


(ii) Section 12(8) of IGST Act:-(8) The place of supply of services by way of transportation of goods, including by mail or courier to,''

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location at which suchgoods are handed over for their transportation.
Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.

Interpretation:
Section 9(3) relating to Reverse charge provides that all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Classification of transaction as Intra-state or Inter state depends on Location of Supplier and Place of Supply. In this transaction Place of Supply according to Section 12 (8) of IGST Act i.e. Place of Registered recipient And Location of Supplier according to above specified statement in section 9(3) is the Location of Recipient.

Conclusion:
According to above discussion You will charge CGST and SGST in Reverse charge Invoice in both the cases irrespective of the place where GTA is registered. (Reply dt.31/05/2019)