CBIC has notified Rent A Cab Service under RCM (Section 9(3)), if service recipient is a body corporate from 01.10.2019. Now I have a confusion regarding place of supply in case of services taken from an unregistered dealer.
Our company is registered in Haryana and providing Furnace Repair Services all over India. Sometimes our engineers visit other states for repair work, so we have to hire cars for their travelling.
Recently we have hired cars of an unregistered Travel Agency located at Pune (MH). The services were taken at Pune (MH). Since we are not registered in Maharashtra, so we'll have to discharge GST liability in Haryana. So please clarify the following:
1.) Place of Supply should be Haryana or Maharashtra? It can't be Maharashtra as we are not registered there. 2.) IGST liability will be discharged or CGST/SGST? For me, It should be IGST?
23 October 2019
As per the provisions of section 12(9)(a) of IGST Act, the place of supply for rent a cab service is the location of the registered service recipient. Hence, in this case , the place of supply is Haryana.
In my view, IGST is to be levied as service provider is in Maharashtra .