Regarding RCM on renting of office vehicle

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This query is : Resolved

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This discussion clarifies the application of the Reverse Charge Mechanism (RCM) on monthly office vehicle rentals for limited companies. RCM is applicable if the supplier is not a body corporate or is a composition scheme registrant. If the supplier is a registered body corporate charging 12% GST, RCM does not apply. You can claim Input Tax Credit (ITC) for RCM GST paid in the same month by issuing an RCM invoice to yourself and remitting the GST to the government.

Nitin Khaire

Nitin Khaire (Querist)

08 March 2025 Sir,
If we Ltd company and we take vehile on rent monthly basis the how may RCM we have to pay on it and can we clam the RCM same month?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 March 2025 RCM applies if the supplier is not a body corporate or is registered under GST but has opted for the composition scheme. However, if the supplier is a registered body corporate and charges GST at 12%, RCM does not apply. Yes, you can claim the ITC for the GST paid under RCM in the same month if you have paid the GST. You must issue an RCM invoice to yourself and pay the applicable GST to the government.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

04 October 2025 Good luck...

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