Category of Supply of Services
Provisions of Reverse Charge Mechanism (RCM) applies to a Goods Transport Agency (GTA) who has not opted to pay central tax (CGST) at the rate of 6% in respect of services provided in relation to transportation of goods by road.
Recipient of Services
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 Act or the Union Territory Goods and Services Tax Act; or
e) any body corporate established, by or under any law; or
f) any partnership firm whether registered or not under any law including association of person; or
g) any casual taxable person; located in the taxable territory.
Does Not Applies to:
RCM does not applies to supply of GTA services in respect of transport of goods by road:
1. Any Un-Registered under the GST (Central/State/Union) or Service Tax Act.
2. The following entities which get registered under the Central Goods and Service Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services:
a. a Department or Establishment of the Central Government or State Government or Union territory; or
b. local authority; or
c. GOVERNMENTAL AGENCIES.
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