GST Rate RCM

Under RCM, the rate is 5%. It applies only when a non-company vendor provides a passenger vehicle to a company, and the vendor hasn't already charged 12% on their bill.

For GST under RCM on vehicle hire charges, the rate depends on what is being hired and the supplier’s service classification. Where a person other than a body corporate provides a passenger motor vehicle on rent to a body corporate, the usual RCM entry is 5% GST, subject to the conditions in the notification; the recipient body corporate pays it. If the supplier has opted to pay GST at the applicable forward-charge rate, RCM may not apply. A vehicle hired with a driver for transporting goods, or a self-drive vehicle hire, can fall under different entries—so the invoice descripttion and contract matter.

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