GST TAX SLAB ON RENT A CAB

Please advise the GST rate applicable under below scenerio, and advise if  RCM also applicable.

  1. if proprietorship firm, receive a car rental services from GST un-registered vendor, at what rate of GST that proprietorship firm charge to the end client (corporate or individual)?
  2. is there any liability for the RCM?

Thank you,

 

Replies (5)
Quick Summary
This discussion clarifies the GST rate applicable to car rental services provided by unregistered vendors to proprietorship firms. The applicable GST rate is 5% (CGST/SGST) or 5% IGST for inter-state transactions, as car rentals fall within this tax slab. Importantly, Reverse Charge Mechanism (RCM) is applicable in this scenario. The thread also touches upon potential TDS implications under sections 194I or 194C and briefly considers scenarios involving entities other than proprietorship firms.

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. 

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. 

In that case what will be TDS deducted 194I or 194C ?

In that case what will be TDS deducted 194I or 194C ?

What happen if the service receive from other than propritorship firm?

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