RCM on hiring the transportation vehicle for third parties

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This query is : Resolved

Rocky Bamania (Querist)

19 January 2024 ABC Ltd Company hired us for transportation of goods from place A to place B. we don’t have any transport vehicle so we hired transport vehicle with driver from third party (all are unregistered persons under GST). Further provided that we paid GST of Transportation service provide to ABC ltd under forward charge.

Query-
1. Weather we are liable to pay GST under RCM for third party transactions made in the given case?
2. If same scenario is made for construction contract (work contract) and we hiring third party service to construction of building can we liable for pay GST under RCM?
3. One of my friend said that the RCM on construction contract in not paid but RCM of hiring of vehicle in liable to paid. Why should RCM in liable for Hiring of Vehicle but not on work contract service for construction. So, therefore clarify the same?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

21 January 2024 https://taxguru.in/goods-and-service-tax/rcm-renting-motor-vehicle-gst.html#:~:text=A%20person%20who%20is%20required,except%20under%20few%20specified%20circumstances.

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