A registered motor vehicle owner rented his motor vehicle to govt.dept. and receives monthly rent. The rent is not inclusive of fuel charges.Govt.dept.bears the fuel expenses separately. What is the rate of gst to be charged by the vehicle owner?
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This discussion clarifies the GST rate applicable when a registered motor vehicle owner rents their vehicle to a government department, with the department covering fuel costs. While renting to State Transport Undertakings might be exempt under Notification 12/2017, general motor vehicle rental services fall under SAC 9966. Based on Notification 11/2017, the applicable GST rate for this service is 18%.
As per Notification 12/2017 under s.no. 22, If it is given to state transport undertaking then it is exempted . And As per Notification 11/2017 under S.no.8(vii) it's 18% GST