24 May 2022
Dear Expert Can you please give your Expert advise in the matter below. We P.Ltd co is taken Mahindra Bolero vehicle on fixed monthly rent 25,000/- with driver . Fuel charges incurred by us . whether GST is applicable under RCM pls . When RCM is applicable
24 May 2022
RCM not applicable. A list of services notified by government in respect of services covered under Sec 9(4), vehicle rent is not covered under such list.
24 May 2022
thanks Madam for immediate reply Pls , but our adudior is saying it is falls under RCM as service provider is Individual & pay @ 5%. Kindly share any materials if any pls 🙏
24 May 2022
RCM applicable. The applicability of RCM on renting vehicles has helped small service providers with improved liquidity by reducing their GST compliance. Paying GST on forward charge was not possible as they received payment for their services after several months. It was decided in the 37th GST Council Meeting to put the supply of renting of motor vehicles under RCM for suppliers paying GST at 5%.
24 May 2022
As per the Serial No.15 of Notification No. 22/2019- Central Tax (Rate) dated 30th September 2019, services of renting of motor vehicles provided to a body corporate by any person other than a body corporate is covered under RCM. If the service provider is a body corporate, RCM is not applicable to the recipient.
24 May 2022
Entry in Notification reads out that " Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service are covered under RCM" . Here cost of fuel is not included in consideration, so you can provide this base for not paying RCM. recipient, provided to a body corporate.
24 May 2022
First ,I am grateful to all of you for answering my query pls . Further I would like to inform that our is PVt LTD co engaged in Manufacturing activities .we are not in same line of business of renting a motor vehicle . We have taken a Vehicle on monthly rent from a person for official work , fuel is in our scope. In this case RCM would be applicable on us or exempted . kindly elaborate pls
25 May 2022
Not applicable,as it is clearly specified that RCM applicable only when person other than body corporate provide services to body corporate.
25 May 2022
If fuel cost is not included in consideration then RCM is not applicable. In your case the rent value is not inclusive of fuel cost therefore RCM will not be applicable.
26 May 2022
Again thanks to everyone only for reply in the matter pls. Kindly note Service provider is a Individual & recepient is body corporate. Fuel in scope of recepient. Now Kindly eleborate
26 May 2022
Services provided where the cost of fuel is included in the consideration charged from the service are covered under RCM" . Here cost of fuel is not included in consideration, so no RCM applicable.
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