Who would liable to pay GST in case of GTA, if the Recipient is unregistered, Transporter OR Recipient ?

Posted by: TaxField on 28/12/2020 7:08 PM

In such cases of GTA (Goods Transport Agency / Transport of Goods by Road) service as per Notification No. 13/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No. 22/2017-CT(Rate) dated 22.08.2017, the Transporter may  charge GST in its Tax Invoice if the Transporter is registered with GST department.

However, if the Transporter is not charging GST in its Invoice/Bill due to any reason (whether he is registered with GST or not) then following category of Recipients are required to pay GST. Moreover, if the following recipients are not registered with the GST then they are required to get registered with GST for making payment of GST on reverse charge basis (RCM) for GTA services when the transporter is not charging any GST in its invoice/bill :- 

• (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) A “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm;
• (f) any body corporate established, by or under any law; or
• (g) any partnership firm whether registered or not under any law including association of persons; or
• (h) any casual taxable person;

From the above, it means that if the Transporter is not charging GST in its invoice/bill then the aforesaid Recipients must get them registered with GST for making payment of GST under RCM even if their annual turnover is below threshold limit.