Applicability of reverse charge mechanism
Garimella umabala (2 Points)
16 April 2020Garimella umabala (2 Points)
16 April 2020
Pankaj Rawat
(GST Practitioner)
(55030 Points)
Replied 16 April 2020
Baskar
(CMA)
(93 Points)
Replied 17 April 2020
Hello,
To bring in greater clarity, serial No. 15 of the notification No. 13/2017-CT (R) dated 28.6.19 has been amended vide notification No. 29/2019-CT (R) dated 31.12.19 to state that RCM shall be applicable on the service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient only if the supplier fulfils all the following conditions:–
(a) is other than a body-corporate;
(b) does not issue an invoice charging GST @ 12% (6% CGST + 6% SGST) from the service recipient; and
(c) supplies the service to a body corporate.
To Conclude:
Service Provider is Corporate Entity-No RCM
Service Recipient is Other Than Corporate Entity-No RCM
Hope Your Doubt will clear now..
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