19 April 2020
As per Sec 9(4) of CGST Act, if a registered person purchases goods/services from an unregistered dealer (URD) then the registered taxpayer is liable to pay GST on reverse charge basis but some goods/service notified by central government after recommendation by GST council fall in RCM but car hire service not fall in that notified services. So if the supplier is registered then RCM is not applicable in above case.
19 April 2020
Notification No. 29/2019-CT (R) dated 31.12.19 state that RCM shall be applicable on the service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient only if the supplier fulfils all the following conditions:–
(a) is other than a body-corporate; (b) does not issue an invoice charging GST @12% (6% CGST + 6% SGST) from the service recipient; and (c) supplies the service to a body corporate.
If the above conditions are cumulatively satisfied RCM will be applicable to the recipient of service.
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