RCM on GTA, Goods and Services Tax - GST

[Bharat Cholleti]

Greetings of the day!!!

RTP is running a Rice Mill procure paddy and rice from different parts of the country has paid the transport charges to the GTA, These services are exempted in the hands of GTA as per NNo.12/2017 CTR dt; 28-6-2017 as per Serial No.21(d) milk,salt and food grain including flour,pulses and rice but in NNO.13/2017 CTR dt; 28-6-2017 GTA services is taxable under RCM since the goods are exempted does rcm also exempted in the hands of recipient rice miller or irrespective of the taxability or exemption of the goods are they liable to pay rcm on such services as per NNo.13/2017 CTR dt; 28-6-2017. please clarify, thanks in advance.

Posts / Replies

[Amit Agrawal]

I have not understood entire context of the query as there are so many things put in there. Let me try to give some pointers:

If GTA services are exempted under Serial No. 21 (d) of Notification No. 12/2017- Central Tax (Rate), no GST is payable under RCM mechanism on very same services by the recipient under Notification No. 13/2017- Central Tax (Rate).

Still, I said before, I have not really understood causes behind your doubts.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Bharat Cholleti]

Thanks for the reply sir.

[Ganeshan Kalyani]

I agree with Amit Sir. If the service is exempt for GTA then the very same service is also exempt for the buyer.

[Shilpi Jain]

Agreed. The exemption is for the service and not dependent on the nature of the service provider/recipient or the person paying tax.

[Amit Agrawal]

Subject exemption is dependent of 'nature of services' as well as service provider (i.e. GTA). But, nature of service-recipient or who is liable to pay taxes, are not relevant for claiming subject exemption.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

Agreed Amitji..