Hire vechicle to stategovernment

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This query is : Resolved

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When hiring vehicles to a government department, the GST payable depends on your Input Tax Credit (ITC) availability. If you claim limited ITC, you'll pay 5% GST. However, if you can claim full ITC, the applicable GST rate increases to 12%. The discussion also touches upon the Reverse Charge Mechanism (RCM) potentially applying to this scenario.

arun kishore

arun kishore (Querist)
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01 April 2020 Sir could u tell me how much gst paid to hire vechicle

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 April 2020 5% GST payable under RCM.

CA Suresh Jain

CA Suresh Jain (Expert)
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02 April 2020 From your query, it appears that you are renting/hiring vehicle to the Government department. In such case you only need to pay the GST @ 5% if you are availing limited ITC or 12% where you are availing full ITC.

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