09 January 2021
SIR We are GTA and also registered under GST. As it is transport service, we are not charging any gst and the same is paid under RCM by the parties.
We have planned to add another service relating to the transport business and bill separately to the parties under the head of Administrative Charges/Expenses on Forward Charge Mechanism basis.
As a GTA, Can It do the two type of services, One is Under RCM for transport services and another one is under FCM for Administrative Services? Plz guide me sir thanks in adv
10 July 2024
Yes, as a Goods Transport Agency (GTA) registered under GST, you can provide two types of services with different GST implications:
1. **Transportation Service under RCM**: As a GTA, when you provide transportation services for goods by road and you are registered under GST, you are required to pay GST under Reverse Charge Mechanism (RCM). This means the liability to pay GST is on the recipient of the service (the customer), not on you. You do not charge GST separately on your invoice for transportation services.
2. **Administrative Charges/Expenses under Forward Charge Mechanism (FCM)**: Apart from transportation services, you can also provide administrative services or any other ancillary services related to your transport business. For these services, you can charge GST separately under Forward Charge Mechanism (FCM). Under FCM, you will charge GST to your customers and collect it from them. You will then be liable to pay this GST to the government.
### Key Points to Consider: - **Separate Invoicing**: Ensure that you clearly differentiate between the transportation services (subject to RCM) and the administrative charges/services (subject to FCM) in your invoices.
- **GST Compliances**: - For RCM: You need to ensure that the RCM provisions are correctly applied. This includes correctly identifying when RCM applies and ensuring the recipient pays the GST directly to the government. - For FCM: You will charge GST as per the applicable rate on your administrative charges/services. You will need to collect this GST from your customers and then file regular GST returns (GSTR-1 for outward supplies and GSTR-3B for tax payment).
- **Accounting and Documentation**: Maintain clear records of invoices issued under RCM and FCM separately. This will help during GST audits and compliance checks.
By following these guidelines, you can effectively provide both types of services (transportation under RCM and administrative services under FCM) while ensuring compliance with GST regulations. If you have any specific queries regarding invoicing, GST rates, or compliance procedures, consulting with a GST professional or your tax advisor would be advisable.
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