(i) Sahdev & Sons, a registered partnership firm located in Maharashtra, hires a goods transport agency (GTA) for transporting industrial raw…

(i) In accordance with section 9 (3) of the CGST Act, 2017, services provided by a Goods Transport Agency (GTA) to partnership firm are taxable under Reverse Charge Mechanism (RCM). Provided, Where the GTA opts to pay GST under the forward charge at 12%, and issues a tax invoice charging GST, GTA is liable to pay GST. In the given case, the GTA has exercised the option to pay tax at 12% under forward charge and issued a tax invoice to Sahdev & Sons. Thus, GTA is liable to pay the tax under forward charge and Sahdev & Sons are not required to discharge tax under RCM. (ii) A registered person with an aggregate turnover in a preceding financial year up to 1.5 crore is eligible for composition levy, under section 10 (1) & 10 (2) of the CGST Act, 2017, in Delhi. Since the aggregate turnover of Manmohan Enterprises does not exceed - 1.5 crore, it is eligible for composition levy in the current year. However, all registered persons having the same Permanent Account Number (PAN) have to opt for composition scheme. If one such registered person opts for normal scheme, others become ineligible for composition scheme. Thus, Manmohan Enterprises either have to opt for composition levy for both the places of business or under normal levy for both the places of business.