Pay GST on Freight on Reverse charge even if value < Rs 5000

If a registered person avails the services from UNREGISTERED GTA (Goods Transport Agency) and the freight< 5000. Does he required to pay GST under RCM ( Reverse Charge Mechanism?

He is required to pay as GTA is under reverse charge under section 9(3) of CGST Act 2017 .

Relevant extract of Section 9(3) of CGST Act 2017

 The Government may, on the recommendations of the Council, by notification [Note 1 , 1 and 3 ], specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

Note

1 Categories of services on which tax will be payable under reverse charge mechanism under CGST Act vide Notification No. 13/2017-Central Tax (Rate) Dated 28th June, 2017

2. By Notification No. 5/2017 – Central Tax dated 19th June, 2017 CBEC specifies the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of Section 9 of the CGST Act 2017 as the category of persons exempted from obtaining registration under the aforesaid Act.

3.  Reverse charge on certain specified supplies of goods under section 9 (3) of CGST Act 2017 vide  Notification No.4/2017-Central Tax (Rate) Dated  28th June, 2017

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