RCM - Renting Motor vehicle 1-10-19

16 October 2019
Dear Expert, Good morning to All of you.
Kindly guide me on the issue below.

Services rendered by other than Body corporate and Service received by Body corporate.
1) Can service provider charge GST in bill ?
(I) 5% or
(II) 12% , if yes then again RCM applicable?

2) Fuel cost is born by receipent only Monthly charges paid to provider -RCM % ?

3) Vehicle hired for a Day, all exp in providers Scope ,RCM applicable ?

Kindly brief

Vishakha Kejriwal. (Expert)

Click to Talk 16 October 2019
Yes, RCM @5% would be applicable even when vehicle hire is for a day and for fuel cost charged.

P.Harish (Querist)
16 October 2019
Thanks for reply madam . Still it is not clear , In the Notification No 22/2019 in column no 3 mentioned as "any person other than Body corporate paying Central Tax @ 2.5% on Rental of motor vehicle with Input Tax Credit only of input service in the same line of Business" . What is its meaning? Why such conditions is put in notification?
In view of the above provisions I have taken guidance to understand it's true facts. kindly explain in detail with point mentioned above.


CA Anita Bhadra (Expert)
17 October 2019
It means if a service provider ( Mr X ) rented his vehicle to the person (Mr. Y ) who is in the same line of business ( business of providing vehicle on hire ) Mr. X is eligible for ITC ( provision is in the same line of Sec 17(5) of block credits.
For further interpretation of the notification, refer:-

P.Harish (Querist)
18 October 2019
Thanks for reply madam, but regret I could not get the answer, If Body corporate hire Vehicle, not is same line, from
(a) From registered person with fuel / without fuel than RCM % ?
(b) from. URD with fuel/ without fuel - than RCM % ?
Kindly advise please

CA Anita Bhadra (Expert)
19 October 2019
RCM % will be 5% in all the cases

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