ING78 (Manager) (92 Points)
29 June 2025Please advise the GST rate applicable under below scenerio, and advise if RCM also applicable.
Thank you,
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8423 Points)
Replied 30 June 2025
GST Rate on Car Rental Services:- If a propritorship firm receives car rental services from a GST unregistered vendor, the GST rate applicable would be 5% (2.5% CGST + 2.5% SGST) or 5 % IGST if it is an interstate transation. This rate is applicable because car rental services fall under the 5% GST slab.
Regarding RCM, yes, there is liability for RCM in this scenerio.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8423 Points)
Replied 30 June 2025
GST Rate on Car Rental Services:- If a propritorship firm receives car rental services from a GST unregistered vendor, the GST rate applicable would be 5% (2.5% CGST + 2.5% SGST) or 5 % IGST if it is an interstate transation. This rate is applicable because car rental services fall under the 5% GST slab.
Regarding RCM, yes, there is liability for RCM in this scenerio.
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