How is RCM applicable in GTA?

Dear Student,
In regular circumstances, any supplier of goods and services is liable to pay the Goods and Services Tax (GST). However, when the reverse charge mechanism is applied, the receiver of the goods becomes the party that is liable to pay the taxes.

​​​​​​“Goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

GST leviable on under section 9 of CGST Act 2017, shall be paid on reverse charge mechanism (RCM) by the recipient of supply of services by a goods transport agency (GTA) in respect of transportation of goods by road to:

1. any Factory registered under or governed by the Factories Act, 1948
2. any Registered Society
3. any Co-Operative Society established by or under any law; or
4. Any Company
5. any Partnership Firm.
6. Association of person.
7. any GST registered person.


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