Commercial Vehicles Rented

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This discussion clarifies the Goods and Services Tax (GST) applicability and rates for renting commercial vehicles. Generally, the GST rate is either 5% with limited input tax credit (ITC) or 12% with full ITC. However, if the vehicle is rented to a Goods Transport Agency (GTA) for transporting goods, it is typically exempt from GST, as per Notification No. 12/2017. If rented to a manufacturer or trader, the standard 18% rate may apply.

sd. aleem

sd. aleem (Querist)
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14 October 2020 Sir/Madam,

Is GST applicable on income from renting motor vehicle, If Yes, what is the GST rate applicable for it?

Lekhraj sood

Lekhraj sood (Expert)
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14 October 2020 The tax rate for renting of vehicles is 5% with ITC of input services in the same line of business or 12% with full ITC.

sd. aleem

sd. aleem (Querist)
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20 October 2020 THANKS FOR YOUR QUICK RESPONSE SIR,
Is there any difference in GST rate, if the commercial vehicle is used for transportation of goods?

Lekhraj sood

Lekhraj sood (Expert)
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20 October 2020 To whom the vehicle is given to GTA for transportation of goods or to manufacturer or trader.

sd. aleem

sd. aleem (Querist)
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20 October 2020 The vehicle is given to GTA.
What if the vehicle is given to manufacturer or trader?

Lekhraj sood

Lekhraj sood (Expert)
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20 October 2020 If given to GTA then exempted from GST. Refer Notification No. 12/2017
If given to others then should be 18%.

sd. aleem

sd. aleem (Querist)
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20 October 2020 Thank You Sir.................