RCM on boat hire charges

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This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on boat hire charges for a private limited company leasing a boat for diving business from an unregistered person. The consensus is that RCM is not applicable as boat hiring is not a specified service under sections 9(3) and 9(4) of GST law.

R S Pandi

R S Pandi (Querist)
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06 February 2020 Dear Sir,

a ( registered ) pvt. ltd. company hired boat on lease for diving ( business) purpose with unregistered person. Monthly rent Rs.1 lakhs.

1) RCM applicable or not
2) if applicable , then what is the gst %.

Kindly advice.

Regards
R.S.Pandi

CA Anita Bhadra

CA Anita Bhadra (Expert)
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06 February 2020 RCM is not applicable on Boat hire charges .
RCM is applicable on specific goods , services or special category of taxpayers under sec 9(3) and sec 9(4) and hiring of Boat is not specified for RCM

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