# RCM on Goods Transport Agency (GTA) Services
## Coverage
Transportation of goods by road by a GTA, where the GTA has NOT opted for Forward Charge, supplied to any of:
- Any registered person under GST
- Any factory
- Any co-operative society
- Any body corporate, partnership firm or AOP
- Any Casual Taxable Person (CTP)
→ Recipient pays tax under RCM.
## Key definitions and rules
- GTA = a goods transporter who issues a consignment note. A transporter who only carries goods without issuing a consignment note is not a GTA.
- Recipient (for GTA purposes) = the person liable to pay freight.
## Exemption first, RCM later — when GTA is exempt, no RCM question
GTA service is exempt (so RCM doesn't arise) if supplied to:
- Government department/establishment that has registered only for TDS u/s 51
- Local authority
- Government agency
- Unregistered individual or unregistered casual taxable person
GTA service is also exempt if transporting any of:
- Relief material for victims of disaster/calamity/accident
- Defence or military equipment
- Registered newspaper or magazine
- Agricultural produce
- Milk, salt or food grain (incl. flour, pulse, rice)
- Organic manure
## Rate matrix
| GTA's choice | Rate | ITC for GTA? |
|---|---|---|
| Opted for FCM | 18% (with ITC) OR 5% (without ITC) | Depends on rate chosen |
| Did not opt for FCM → RCM applies | 5% (without ITC) | No ITC to GTA |
ITC restriction at 5% is on the GTA only — the recipient can take full ITC of the 5% RCM tax paid.
## Two critical defaults
1. If the GTA is unregistered, assume it has not opted for FCM → RCM applies at 5%.
2. If the question is silent on FCM, assume RCM applies.
## Decision flow
```
1. Is the transporter a GTA (issues consignment note)? NO → not GTA service, normal rules.
2. Is the service / recipient covered by an exemption? YES → Exempt; stop.
3. Has the GTA opted for FCM? YES → FCM, GTA pays.
4. NO (or silent / unregistered) → RCM @ 5%, recipient pays.
```