GTA under both RCM & FCM Mechanism
Query (Issue) Started By: – Prakriti Mish Dated:- 21-8-2018 Last Reply Date:- 8-1-2019 Goods and Services Tax – GST
Got 14 Replies
GST
What would be the implications if a GTA has billed under both RCM and FCM.?
\nwhat would happen with the input taken in FCM ? Do we have to follow FCM ?
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nGTA service supplier are exempted from GST registration. And if he wants to register then pay gst. Two rate option is available. Pay tax @12% with the benefit of input tax credit. Or pay tax @5% without availing input tax credit. If having registration and filing return is only costs the compliance.
\nReply By KASTURI SETHI:
\nThe Reply:
\nHeavens will not fall !!
\nReply By <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Reply: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , Thanks for liking and appreciating my reply on the issue. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GTA under both RCM & FCM Mechanism Query (Issue) Started By: – Prakriti Mish Dated:- 21-8-2018 Last Reply Date:- 8-1-2019 Goods and Services Tax – GSTGot 14 RepliesGSTWhat would be the implications if a GTA has billed under both RCM and FCM.? what would happen with the input taken in FCM ? Do we have … Continue reading “GTA under both RCM & FCM Mechanism”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13335","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13335"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13335\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n8.
\nGoods Transport Agency Service (GTA)
\nAllowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year)
\nThis is an extract of decisions taken by GST Council's 20th meeting held on 5.8.2017. As per this you cannot adopt hybrid procedure. GTA can wither opt for FCM or RCM. Regarding GTA Service, there is no change between pre-GST era and post-GST era. First liability is cast upon consignor or consignee and , thereafter, GTA comes into play. Practically, normally consignor or consignee pays the freight and they can take ITC after payment of GST in cash.
\nIt is now crystal clear that you cannot opt for both mechanism<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nReply By Prakriti Mish:
\nThe Reply:
\nThank You Sethi Sir for the Reply.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nI agree with the views of Sri Kasturi Sir.
\nReply By hr hr2:
\nThe Reply:
\nHello Sir,
\nA follow-up question:
\n-> If the GTA (Vehicle Owner) is currently registered under RCM and wishes to move to FCM in the next FY, how would the following cases be treated:
\n1. If the GTA places own vehicles directly to a manufacturer? (Freight + 12% needs to be charged?)
\n2. If the GTA places own vehicles through a broker, where broker is unregistered under GST, who needs to pay GST? Example- Goods manufactured by party A is being placed through a GTA party B who asks the broker for a veh<\/p>\n
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