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GST on hiring of motor vehicle

02 January 2020

is there any issue if GST has been paid on both rates @ 5% on few invoices and @ 12% on few invoices and no itc has been claimed at all .would there be any problem in future regarding the rates followed?

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8 Replies

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 02 January 2020

Are you Goods Transport Agency or the Service Receiver ?

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Gayathri Maruwada (52 Points)
Replied 02 January 2020

We r neither gta nor service receiver

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 02 January 2020

Then how are you concerned with the issue ?

Gayathri Maruwada (52 Points)
Replied 02 January 2020

General hiring of motor vehicles also has two rates as per notification 20/2017 on 22nd August 2017

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 02 January 2020

Yes if you opt for 5% , the G.TA cannot avail I.T.C on their inputs, where as in case of 12% , they can avail input on their input services.

If it is the case of service which is liable for reverse charge, the G.T.A need not care of the tax and it is the recipient has to pay on reverse charge basis.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 03 January 2020

Yes ........ As per Notification 11/2017 CT(R) , you can opt for only one scheme in Fy ie 5% without ITC or 12% with ITC,.

So you are not allowed to continue with both the scheme in FY .