GST RENT A CAB

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From 01/10/2019 if a proprietorship/individual supplying Rent a cab to corporate clients,he has two options

1.charge 12% GST and avail ITC

2. GST @ 5% is to be paid by receipient on RCM 

My querry is

In case 2,whether ITC for same line of business services taken by prop/individual to provide services to corporate will be availabe.

for example hiring cab from outside and providing to corporate.

3.If proprietorship/indiviual has multiple corporate clients and some of them are charged @ 12% and others pay 5% on RCM basis.

How ITC will be claimed in this case.

a.whether it is available

b.if yes,on proportionate basis or any other basis.

 

Replies (3)
ITC inward supply from same line business can Avail if you are charging 5% on FC (As per Notification 11/2017)

Now charging 5% & 12% GST . You cannot excercise both options . You can excercise any one option in beginning of FY either 5% or 12% & have to carry the same for whole FY.
After 01.10.2019 in case of 5% it has to be RCM if prop or individual billing to corporate so 5% can not be FC.in such case of services supplied on RCM,whether ITC is available
Yes... as per Notification 22/2019 CT (R) it's cover under section 9(3) (RCM) , the supplier of service cannot claim ITC . but if it is provided other then corporate clients , the ITC can be claimed (No RCM applicable)

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