QUESTION
A registered GTA is making 2 type of invoices 1. no tax charged 2. 5% tax charged (2.5+2.5) no ITC claimed. Is there any RCM payable by service receiver if yes, which rate is applicable for RCM.
ANSWER
FACT OF THE CASE:
GTA is providing services and invoices of two types are being raised- @0% and @5%. To consider RCM applicability in these cases.
LAW APPLICABLE:
1. Entry number 1 of notification 13/2017 CGST(R) is laid as under;
Notification No. 13/2017- Central Tax (Rate)
| Sl. No. | Category of Supply of Services | Supplier of service | Recipient of Service |
| (1) | (2) | (3) | (4) |
| 1 |
Supply of Services by a goods transport agency (GTA) 1[who has not paid central tax at the rate of 6%] in respect of transportation of goods by road to- (a) any factory registered under or governed by the Factories Act, 1948(63 of 1948);or (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person. 6[Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, - (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.] |
Goods Transport Agency (GTA) |
(a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person; located in the taxable territory. |
INTERPRETATION:
Entry no. 1 of notification 13/2017 CGST(R) specifies that if the GTA is not charging tax at 12% then tax under RCM would be payable by the registered recipient of the GTA service.
CONCLUSION:
So to answer your questions;
Question 1: Invoice
Type 1 wherein no tax is charged by GTA.
Answer 1: RCM would be applicable @ 5% since GTA has not charged tax
@12%. This tax paid under RCM can be claimed as input by the service recipient.
Question 2: Invoice
Type 2 wherein tax @ 5% is charged by GTA.
Answer 2: RCM would be applicable @ 5% since GTA has not charged tax
@12%. However this tax is not payable by the recipient since the supplier has
already discharged the tax liability under FCM. If a tax liability under RCM is
discharged by the supplier under FCM then the same can not be recovered again
from the recipient because this would lead to double taxation. This view has
been upheld by the Mumbai Tribunal under Umasons Auto Compo Pvt. LTd. Citation :
2013(11)LCX0149. (Reply dt.
04/06/2022 )