Vehicle Hire Charge

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicable to hiring, renting, or leasing a lorry. The standard GST rate for these services is 18% under forward charge. The distinction between 'renting' (typically for longer periods) and 'hiring' (usually for shorter periods) doesn't alter the GST rate. Reverse Charge Mechanism (RCM) is generally not applicable in this scenario, unless a passenger-carrying vehicle is involved.

Anshuman Basu

Anshuman Basu (Querist)
Follow

14 January 2020 I have one lorry which I want to give on hire to a company for one month. what rate of GST should I change in the invoice for hire charges. suppose if the same vehicle is given on lease basis or rent basis then what rate of GST should we change. Kindly clarify.
Sir one more question What is the difference between Rent the lorry to Registered party and hire the lorry to Registered party

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

14 January 2020 GST rate for hiring /renting/leasing of lorry is 18%

In general terms - rent the lorry means for a larger period and hire the lorry is for a shorter period

Anshuman Basu

Anshuman Basu (Querist)
Follow

14 January 2020 what is the GST provision If I give My Lorry as Hire to any retailer or manufacture or I Give them as Rent? I means what is the GST provision if renting the lorry to Registered party or hire the lorry to Registered party? is any RCM Provision in this scenerio?

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

14 January 2020 RCM is applicable only when you give a vehicle (which is design for carrying passengers)on hire or rent to a body corporate ( Company etc )

GST provision is simple - hire charges @ 18% on forward charges

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now