Tax rate
This query is : Resolved
17 July 2017
Dear Experts,
how much is the tax rate, for providing car service to the bank manager ?
thank you
how much is the tax rate, for providing car service to the bank manager ?
thank you
17 July 2017
IGST 18% or CGST 9% and SGST 9%
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17 July 2017
18%..............…......
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05 September 2017
Rashmi Mam, plz reply to my msg.
05 September 2017
WILL REPLY AFTER CHECKING IT
05 September 2017
Ok Mam, i wait
thank you.
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06 September 2017
Mam, plz give time as soon as possible bcz 30 days time period is also elapse.
have to do before option to reply is finished.
thank you
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06 September 2017
just bcz of worried, i said it
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07 September 2017
Done it......
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22 October 2017
is GST rate for renting car service is chaged?.... and new rates are applicable from which month?
03 November 2017
Dear Esperts,
new gst rate is applicable from which month and is GST rate of providing car on rent to bank for manager purpose is changed? before it was 18%.
26 July 2025
Here’s the latest **GST rate clarification** for providing a **car rental service to a bank manager**, as of FY 2025:
---
## 🚗 GST Rate on Car Rental Services in India
Car rental services fall under **Rental Services of Transport Vehicles (HSN/SAC 9966)** which cover services *with or without operators*.
### Two GST Rate Scenarios:
1. **GST @ 5% (CGST 2.5% + SGST 2.5%)**
* Applies when the **rental includes fuel cost** in the total consideration.
* **Input Tax Credit (ITC) cannot be claimed** on goods or services used to provide this service, except limited service-side ITC.
* Usually termed as **“rent-a-cab” service** with fuel-inclusive pricing.
([Vinod Kothari Consultants][1], [aktassociates.com][2], [Taxscan][3])
2. **GST @ 18% (CGST 9% + SGST 9%)**
* Applies when fuel cost is **not included separately** (i.e., customer bears fuel separately, or fuel cost is omitted).
* **Full ITC is available** for inputs used in providing the service.
([Taxscan][3], [aktassociates.com][2])
📌 Example:
* If you charge ₹1,00,000 including fuel → apply **5% GST**
* If fuel is billed separately or not included → apply **18% GST**
---
## 🔁 Reverse Charge Mechanism (RCM)
* If a **body corporate** (like a bank) procures `renting of motor vehicle with fuel included @5%`, the GST liability may **shift to the recipient** under **RCM**.
* You, as provider, should check if the service is provided to a corporate entity — then RCM might apply.
([TaxGuru][4], [Taxscan][3])
---
## ✅ In Your Case (Providing Service to Bank Manager):
* If the car service to the bank manager includes **fuel cost in fare**, the applicable GST is **5%**.
* If the bank manager is using a car from your fleet and paying you, and he is **employed by a corporate**, the GST may need to be accounted for under **RCM** (i.e., the bank may need to pay GST directly).
([carahulgupta.com][5])
---
### 📌 Quick Reference Table
| Scenario | GST Rate | ITC Allowed | RCM Applies to Corporate |
| ------------------------------------ | -------- | ---------------------------- | --------------------------------- |
| Car rental **includes fuel** in fare | 5% | No (except limited services) | Yes, if service to body corporate |
| Car rental **excludes fuel** | 18% | Yes | No |
---
---
## 🚗 GST Rate on Car Rental Services in India
Car rental services fall under **Rental Services of Transport Vehicles (HSN/SAC 9966)** which cover services *with or without operators*.
### Two GST Rate Scenarios:
1. **GST @ 5% (CGST 2.5% + SGST 2.5%)**
* Applies when the **rental includes fuel cost** in the total consideration.
* **Input Tax Credit (ITC) cannot be claimed** on goods or services used to provide this service, except limited service-side ITC.
* Usually termed as **“rent-a-cab” service** with fuel-inclusive pricing.
([Vinod Kothari Consultants][1], [aktassociates.com][2], [Taxscan][3])
2. **GST @ 18% (CGST 9% + SGST 9%)**
* Applies when fuel cost is **not included separately** (i.e., customer bears fuel separately, or fuel cost is omitted).
* **Full ITC is available** for inputs used in providing the service.
([Taxscan][3], [aktassociates.com][2])
📌 Example:
* If you charge ₹1,00,000 including fuel → apply **5% GST**
* If fuel is billed separately or not included → apply **18% GST**
---
## 🔁 Reverse Charge Mechanism (RCM)
* If a **body corporate** (like a bank) procures `renting of motor vehicle with fuel included @5%`, the GST liability may **shift to the recipient** under **RCM**.
* You, as provider, should check if the service is provided to a corporate entity — then RCM might apply.
([TaxGuru][4], [Taxscan][3])
---
## ✅ In Your Case (Providing Service to Bank Manager):
* If the car service to the bank manager includes **fuel cost in fare**, the applicable GST is **5%**.
* If the bank manager is using a car from your fleet and paying you, and he is **employed by a corporate**, the GST may need to be accounted for under **RCM** (i.e., the bank may need to pay GST directly).
([carahulgupta.com][5])
---
### 📌 Quick Reference Table
| Scenario | GST Rate | ITC Allowed | RCM Applies to Corporate |
| ------------------------------------ | -------- | ---------------------------- | --------------------------------- |
| Car rental **includes fuel** in fare | 5% | No (except limited services) | Yes, if service to body corporate |
| Car rental **excludes fuel** | 18% | Yes | No |
---
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