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Car rental services gst rate & sac
If i provide Innova,Swift etc type of cars along with driver and charge gst @ 5per cent without claiming ITC on services provided by us? is it correct? and what should be the sac code for the same 9985 or 9966?
Replies (1)
| Yes, 5% GST without ITC is the correct rate for this type of service, and the SAC code is 9966. Here is the detailed position: 1. SAC Code: 9966 covers 'Rental services of transport vehicles with or without operator.' Since you are providing a car WITH a driver, SAC 9966 is the correct code (not 9985, which is for miscellaneous support services). 2. GST Rate: As per Notification No. 11/2017-CT(Rate) and its amendments, rental of motor vehicles with driver for carrying passengers attracts 5% GST PROVIDED the supplier does not avail ITC on procurement of the vehicle or its maintenance. This is the correct concessional rate for cab/car rental with driver. 3. If You Claim ITC: If you opt to claim ITC on the car purchase or maintenance, the applicable rate jumps to 12% GST. So the 5% rate is conditional on not availing ITC. 4. RCM on Car Rental: If you provide car rental services to a body corporate (company), the body corporate must pay GST under Reverse Charge Mechanism (RCM) @ 5% as per Notification 13/2017-CT(Rate) — verify whether your clients are body corporates and handle accordingly. 5. Invoice: Issue GST invoice mentioning SAC 9966, GST @ 5%, with a note that ITC is not availed on the vehicle. |
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