GST-Rcm

This query is : Resolved

Sonnal Khandaray (Querist)
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23 September 2021 Hi All

one of my clients is engaged in the business of providing vehicles on rent. He also take such services from other vehicle owners and makes payment. for inward supplies whether GST is applicable under RCM if the other vehicle owners are URD. Payments are approx.. Rs. 40000 per month per vehicle.

Thanks in advance.

Lekhraj sood

Lekhraj sood (Expert)
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23 September 2021 RCM applicable only if -
1. The supplier is not a body corporate.
2. Your client is a body corporate.
3. The supplier does not charge 12% GST.

Sonnal Khandaray

Sonnal Khandaray (Querist)
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24 September 2021 Hello Sir
One more query on this.
Can I get credit of RCM paid on these transactions?

Thanks in advance.

Lekhraj sood

Lekhraj sood (Expert)
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24 September 2021 In the same line of business,yes.

Sonnal Khandaray

Sonnal Khandaray (Querist)
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24 September 2021 If I am paying GST @ 5% on output liability?

Lekhraj sood

Lekhraj sood (Expert)
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24 September 2021 Then No ITC as the rate of 5% with the condition of NO ITC