This discussion clarifies whether GST under Reverse Charge Mechanism (RCM) is applicable for payments made to unregistered individuals for vehicle repairs costing less than Rs. 5000. The consensus is that RCM is not applicable for repairs and maintenance of vehicles, even if paid in cash to unregistered persons below the threshold.
10 April 2023
We are registered GTA. We have few payment made to unregistered person which are below Rs.5000/-. These are the payments made to garage Owners towards small repair works for the commercial vehicles paid in cash. Does we need to pay GST under RCM for such kind of payments? Or is it exempted.