Commercial vehicles provided to company

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This query is : Resolved

karan kumar (Querist)

17 May 2019 Dear All,
We have provided the commercial vehicles to various companies on monthly basis. however we are not having transport company....being individual all companies are deducting 1% TDS on payment. Pls let me know is GST applicable in this case whereas the receipt are above 50 Lacs. If yes whether we have to charge GST in invoice if yes how much percent and what would be it's HSN code......or does this service falls in the RCM..

Pls guide.....

Thanks
Karan

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 May 2019 1 RCM not applicable.
2 18% GST is applicable on renting of vehicles, if fuel cost is borne by the service recipient.
3 GST not applicable if you run the transport.

karan kumar

karan kumar (Querist)

18 May 2019 Also clarify whether service recipient can avail the ITC of 18% GST whereas the section 17(5) has blocked the ITC of motercab,

Pls guide....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 May 2019 Commercial vehicles ITC allowed. Motor cab is a personal vehicle.

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