Gst on hiring of motor vehicle.

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This discussion addresses GST on motor vehicles hired by government offices where fuel is provided by the office and the supplier is unregistered. It questions whether GST is applicable under Reverse Charge Mechanism (RCM) and clarifies that RCM generally doesn't apply to government offices or when fuel charges are separate. The thread also delves into calculating Input Tax Credit (ITC) disallowances under Rule 36(4) based on GSTR-2A figures for October 2019.

Sabita Sahoo

Sabita Sahoo (Querist)
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06 January 2020 A vehicle is hired by govt.office but cost of fuel is borne by the govt.office.The owner of vehicle I.e supplier is unregistered.Shall the govt.office liable to pay gst @5% under RCM?The govt.office has gstin as a tax deductor.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2020 RCM not applicable on government offices.

Sabita Sahoo

Sabita Sahoo (Querist)
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06 January 2020 Then in this case no gst applicable?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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06 January 2020 RCM is not applicable on services by way of renting of motor vehicle , where fuel charge is not included in consideration

Sabita Sahoo

Sabita Sahoo (Querist)
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06 January 2020 If RCM not applicable and supplier is unregistered,then liability under gst not arises.Is it correct?

Sabita Sahoo

Sabita Sahoo (Querist)
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06 January 2020 In another case,the taxpayer has availed cgst/ sgst ITC of Rs.12363.00 each where as gstr2a shows one invoice DTD.2.10.19 at Rs.1875.00 under each act and on DT.10.10.19 invoice having tax Rs.850.00 under each act.What amount to be disallowed u/R36(4)?please calculate

CA Anita Bhadra

CA Anita Bhadra (Expert)
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06 January 2020 Taxpayer can avail ITC 120% of ( 1875+1875+850+850)= 6540 for the month of Oct 2019.
Now it is 110% in place of 120%

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