Reverse Charge mechanism, Goods and Services Tax - GST

[MANOHAR KALBURGI]

Dear Sir/Madam

Reverse Charge if the GTA Is Unregistered

Where registered Person under GST takes a services from Unregistered person (GTA) for carrying of goods, does this transaction is governed by section 9(3) or 9(4) of the CGST Act, 2017?

Or

above transaction shall be governed by Notification No. 20/2017-Central Tax (Rate) 22nd August, 2017? where GST liable at 5%/12%.

Or

above transaction shall be governed by notification No. 32/2017 central tax (rate) dt 28th June, 2017 - where only one item is notified i.e promoters and developers for the purpose section 9(4) of the CGST Act, 2017??

Please look into the issue and provide us your valuable opinion.

Thanks in advance

Posts / Replies

[CA HemanthKumar]

Dear Sir,

Your transaction will be covered under section 9(3) of the CGST Act, 2017 and liable to GST @ 5%. Further section 9(4) was amended and made effective only to real estat sector as of now.

Only point we need to ensure is that whether my supplier is a GTA or not. If he is a GTA, then RCM will apply. Otherwise, the said services are exempt as per S.No.18 of Notification No.12/2017 CT(R).

Regards

CA Hemanth Kumar